Cigna Accuses Lab Co. Of $84M Billing Fraud

By Andrew Westney (October 16, 2014, 3:41 PM EDT) -- Cigna Health and Life Insurance Co. hit Health Diagnostic Laboratory Inc. with an $84 million suit Wednesday in Connecticut federal court, alleging the company failed to charge Cigna insurance plan members for out-of-network services and paid referral fees to the in-network providers that encouraged them to violate their contracts.

Cigna claimed that Richmond, Virginia-based HDL had engaged in an ongoing, fraudulent "fee-forgiving" scheme that involves luring Cigna members to use the company's health-testing services by telling them they don't have to pay for their share of the cost, then charging exorbitant reimbursement rates for thousands of claims to Cigna, violating the Employee Retirement...

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