Cigna Administrative Fee Class Action Settlement

Cigna and American Specialty Health have agreed to pay $8.25 million to resolve claims that they charged improper administrative fees.

The settlement will benefit Cigna plan members whose plan benefits and/or cost share under a plan were determined based on American Specialty Health’s charges to Cigna for the following types of services: chiropractic, acupuncture, massage therapy, naturopathy, physical therapy, or occupational therapy.

In December 2012, plaintiff Carol Lietz first filed claims against Cigna Corporation and American Specialty Health Group Inc., the company which provides Cigna with a network of healthcare providers and processing of claims.

Lietz claimed that Cigna forced its plan members to pay administrative fees to American Specialty Health by secretly charging the costs as medical expenses.

Eventually, Leitz’s claims against Cigna and American Specialty Health were consolidated into a larger class action lawsuit with plaintiffs Kathleen Kilroy, Jianliang Zhu, and Joyce Allen. Together, these plaintiffs brought claims under the Employee Retirement Income Security Act (ERISA).

The consolidated class action lawsuit was eventually settled by Cigna and American Specialty Health. The companies do not admit wrongdoing by settling the claims against them. Instead, the settlement will allow for the resolution of claims without the risks and costs of continued litigation.

At this time, there is not an estimate for how much each Class Member’s payment will be. The amount to be distributed to Class Members will depend on attorneys’ fees, notice and administration costs, litigation expenses, and service awards.

Of this amount, Class Members will receive a pro rata payment based on the co-insurance or deductible amount paid for approved services.

Although there isn’t a solid estimate amount available for Class Member payments, the settlement notice states that payments are estimated to “fully compensate Settlement Class members who made out-of-pocket payments towards administrative fees.”

Class Members are not required to file a claim to participate in the settlement. By doing nothing, Class Members will automatically benefit.

The deadline for exclusion and objection is July 10, 2019. The final approval hearing for the settlement is currently scheduled for Aug. 9, 2019.

Who’s Eligible

Plan members whose plan benefits and/or cost share under a plan were determined based on American Specialty Health’s charges to Cigna for the following types of services: chiropractic, acupuncture, massage therapy, naturopathy, physical therapy, or occupational therapy.

Potential Award

The amount paid to each Class Member will depend on the net settlement fund left after costs and the amount each Class Member paid in co-payment and deductible amounts.

Proof of Purchase

N/A

Register Email Address

REGISTER EMAIL ADDRESS »

Objection Deadline

7/10/2019

Case Name

In re: Cigna-American Specialty Health Administrative Fee Litigation, Case No. 2:16-cv-03967-NIQA, in the U.S. District Court for the Eastern District of Pennsylvania

Final Hearing

8/9/2019

UPDATE: The Cigna Administrative Fee Class Action Settlement was granted final approval on August 29, 2019. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

UPDATE 2: On April 13, 2020, Top Class Actions viewers started receiving checks in the mail from the Cigna administrative fee class action settlement worth as much as $33.60. Congratulations to everyone who filed a claim and got PAID!

Settlement Website

www.AdminFeeSettlement.com

Claims Administrator

Cigna-American Specialty Health Administrative Fee Litigation
c/o A.B. Data Ltd.
P.O. Box 173065
Milwaukee, WI 53217
888-206-2123
info@AdminFeeSettlement.com

Class Counsel

Steven A. Schwartz
Mark B. DeSanto
CHIMICLES SCHWARTZ KRINER & DONALDSON-SMITH LLP

Jason M. Knott
D. Brian Hufford
Jason S. Cowart
Nell Z. Peyser
ZUCKERMAN SPAEDER LLP

Defense Counsel

Joshua B. Simon
Warren Haskel
Carrie J. Bodner
Terence Y. Leong
KIRKLAND & ELLIS LLP

Elizabeth Mann
Andrew Z. Edelstein
MAYER BROWN LLP

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