About the Cigna Settlement
Patients who received a hospital bill after Cigna Healthcare informed them that their healthcare provider was in-network may possibly participate in a recent $5.7 million class action settlement.
This settlement addresses a system configuration error that allegedly misclassified out-of-network (ghost) providers as in-network for LocalPlus plan members, resulting in patients receiving what they say were unexpected balances due.
Why did Cigna LocalPlus Clients Sue About?
Andrew and Andrea Hecht filed a class action lawsuit against Cigna Healthcare after discovering that their hospital was actually out-of-network, despite the company’s alleged publication of benefits showing in-network coverage.
Damaged credit and collections
When hospitals and healthcare providers realized they were actually out-of-network with Cigna, they sent balance bills directly to patients.
These unexpected bills often went to collections, damaging credit scores and allegedly causing financial hardship for families who thought their insurance covered the services.
The Hechts say they received bills that damaged their credit when their medical providers demanded payment for the difference between the billed charges and Cigna's payment.
ERISA breach claims
The class plaintiffs say that Cigna violated the Employee Retirement Income Security Act (ERISA) by breaching its fiduciary duty to maintain accurate provider directories.
Company admits network error
According to Cigna, a configuration error in the company's benefits server caused certain out-of-network healthcare providers to appear as in-network for LocalPlus plan members.
Federal court filings revealed Cigna's ghost network affected multiple LocalPlus plan members who relied on the company’s inaccurate provider lists when seeking medical care.
While Cigna denies any wrongdoing, the company agreed to settle to avoid continued litigation costs and risks.
Who Can File a Claim in the Health Insurance Settlement?
Cigna Healthcare patients may possibly be eligible for this ERISA settlement if they meet the following conditions:
- Received health benefits through a LocalPlus plan that Cigna administered.
- Received medical treatment from a provider they believed was in-network.
- Cigna publicized the provider as in-network.
- Provider was actually out-of-network due to the Cigna system error.
- Received a balance bill because the provider didn't honor in-network pricing.
Some potentially eligible Cigna patients may have received settlement notices with claim ID numbers. However, many patients who were affected by the system error were not notified.
Proposed ERISA Settlement Restitution
This settlement may possibly provide direct payments to qualifying class members who submit valid claims, accompanied by proof of balance bills.
Restitution depends on two factors:
Total approved claims are $300,000 or less:
- Receive full documented medical bill reimbursement.
- Interest charges get covered.
- Debt collection fees get reimbursed.
- Any penalties related to the balance bill get paid.
If claims exceed $300,000:
- Each claimant receives a proportional share.
- Payments get calculated based on a percentage of the total claims
- Larger balance bills receive proportionally more.
- Everyone shares equally in the available fund.
Injunctive relief benefits
Beyond cash payments, the settlement provides $4,642,152.03 in equity benefits.
Cigna Healthcare agrees not to recategorize claims from in-network to out-of-network status. Without this protection, patients may face additional balance bills for the full difference between the provider's charges and the out-of-network reimbursement rates.
This injunctive relief applies automatically to all eligible class members who don't need to file a claim to receive this protection.
How to Submit a Claim
Online claim
- Visit CignaLocalPlusSettlement.com.
- Contact the claims administrator to obtain a Claim ID and confirmation code (or enter the info if you received a settlement letter).
- Upload your medical bills.
- Submit required attestations.
- Receive confirmation of your submission.
Mail-In claim
- Download the PDF claim form from the settlement website.
- Complete all required fields legibly.
- Attach copies of your documentation.
- Mail your complete claim package to: Cigna LocalPlus Settlement Administrator, ATTN: Claim Forms, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103.
Online and mailed claims must be received or postmarked by January 5, 2026.
Required documentation
Your claim generally needs these essential items:
- A Cigna member ID number.
- Proof of the balance bill from your provider.
- Receipts showing payment amounts if you paid the bill.
- If unpaid, signed attestation agreeing to use settlement funds for payment.
- Certification under penalty of perjury that your information is accurate.
Important Cigna Settlement Dates
- January 5, 2026: Final day to submit claims.
- January 5, 2026: Deadline to exclude yourself from the settlement.
- January 5, 2026: Last day to object to settlement terms.
- March 24, 2026: Final approval hearing.
Check CignaLocalPlusSettlement.com for updates on court hearing and appeals status.
What Happens If You Already Paid Your Balance Bill
Many class members have already paid their unexpected medical bills to protect their credit or avoid collections.
This settlement can possibly cover these past payments, including:
- Original balance bill amounts.
- Interest charges from payment plans.
- Credit card interest.
- Collection agency fees.
- Any penalties or late fees.
The settlement administrator will review documentation to calculate all reimbursement amounts.
Other unpaid bill considerations
Patients who haven't paid their balance bills may still possibly participate in the Cigna Healthcare settlement by signing an affidavit promising to use settlement funds to satisfy their debts.
The attestation requires the patient to pay either:
- Healthcare providers directly.
- Collection agencies holding the debt.
- Assignees who purchased the debt.
The agreement also holds Cigna harmless from any future claims related to these specific balance bills.
Learn More About Eligibility
Some class members may have received an official data breach notification letter with a Claim ID from the claims administrator.
However, Cigna Healthcare patients who have already paid unexpected balance bills or still face outstanding medical debt due to Cigna’s system glitch may still possibly file a claim, even if they didn't receive a breach notice.
Visit https://cignalocalplussettlement.com today to check eligibility, obtain a Claim ID, or learn more about this ERISA settlement.
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