Cigna Shorted Texas Hospitals $22M In Payments, Suit Says

Law360, New York (June 7, 2013, 6:30 PM EDT) -- Several hospitals and medical centers owned by Texas-based Victory Healthcare on Thursday accused Cigna Healthcare of Texas of reneging on $22.3 million in payment claims that the medical providers submitted for Cigna-insured patients.

The hospitals contend Cigna has violated the Texas Insurance Code and the federal Employee Retirement Income Security Act by allegedly failing to pay the claims in a timely manner and in the case of ERISA regulated plans, unilaterally reducing the amount it was obligated to pay, the complaint says.

“Plaintiffs billed their usual...
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