Cigna sues Texas clinics for $2M in claims

A Cigna subsidiary in Texas filed a lawsuit that alleges three dissolved clinics, their owner, a manager and managing physicians defrauded the health insurer through a billing scheme.

The lawsuit, filed in the U.S. District Court for the Northern District of Texas Dallas Division, claimed the defendants conspired to bill Cigna for nearly $2 million in healthcare claims for treatment that wasn't given or was rendered under false pretenses.

Three Waxahachie, Texas-based clinics were named as defendants: VCare Health Services, Waxahachie Medical and Texas Care Clinics. They all dissolved as of June 2019. However, under Texas law, they can continue to exist three years after their dissolution to defend their names in any action brought against them.

The owner of the clinics, Trivikram Reddy, DNP, is in U.S. custody at the Federal Correctional Institution Seagoville. The phone number affiliated with all three clinics and Dr. Reddy is no longer accepting calls.

Cigna alleges while the three clinics were separate healthcare providers, they all had the same address and operated as shell companies. The insurer claims the entities falsified medical records and altered medical diagnosis codes to hike up reimbursement rates.

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