Cigna Settles Overcharging Allegations with $172 Million Payment

Health insurance company Cigna has agreed to pay over $172 million to settle allegations that it knowingly submitted false diagnosis codes for Medicare Advantage plans between 2016 and 2021. The U.S. Department of Justice accused Cigna of violating the False Claims Act by not removing incorrect codes, resulting in increased payments. Cigna will also enter a corporate-integrity agreement for five years. This settlement comes as Cigna faces a separate class-action lawsuit regarding the use of an algorithm to deny medical claims and reduce labor costs.