Judge Guts Cigna Health Payment Fraud Class Suit

Law360, New York (September 23, 2011, 7:53 PM EDT) -- A New Jersey federal judge on Friday threw out most claims from a consolidated putative class action brought by health plan subscribers, physicians and medical associations alleging Cigna Corp. used manipulated data to fix prices and reduce employee and other benefits payments.

The consolidated suits accuse Cigna, UnitedHealth Group Inc. and Ingenix Inc. of conspiring to deflate out-of-network reimbursement rates, leading to higher medical bills for patients and lower compensation for doctors.

The plaintiffs — which include insured individuals, health care providers and medical professional organizations...
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