Cigna, claims processor hit with 2nd cost-shifting lawsuit in 2 months

Cigna, third-party claims administrator American Specialty Health and its subsidiaries face more accusations of cost-shifting for plan members receiving physician and occupational therapy services, according to Bloomberg.

The lawsuit, filed in the U.S. District Court for the Southern District of California May 23, alleges Cigna and the claims processor colluded to overcharge members of Cigna's employer-sponsored health plans for what appeared to be medical expenses for therapy services, but were actually charges for ASH's services. Plaintiffs accused Cigna and ASH of breaching their Employee Retirement Income Security Act duties by concealing material information about ASH's charges from members and plans on their explanations of benefits.

The lawsuit echoes a similar claim filed in the past two months against the health companies and their subsidiaries. In April, Cigna and ASH were slapped with a lawsuit arguing the companies colluded to overcharge members who received chiropractic services.

Cigna declined Bloomberg's request for comment on the lawsuit, which seeks class-action status, due to a company policy to not comment on pending litigation. ASH didn't immediately respond to the publication's request for comment.

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