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CIGNA to pay $19 million to providers

Physician Practice Advisor, May 11, 2005

After claiming they were shortchanged by CIGNA, 210,000 acupuncturists, chiropractors, podiatrists and other specialty providers will be splitting a $19 million lawsuit settlement now that U.S. District Judge Federico Moreno approved the pay plan. The nation's largest health insurer, Philadelphia-based CIGNA agreed to pay a settlement that includes an $11.6 million fund to compensate providers and $7.5 million to cover plaintiffs' attorney fees and improve claims handling. Although CIGNA settled with the providers, the company did not admit wrongdoing in the suit.

"This settlement represents ongoing progress in our ability to deliver quality care and to enhance our relationships with healthcare professionals," said W. Allen Schaffer, M.D., CIGNA's chief clinical officer, in a press release. "The agreement makes it easier for CIGNA and healthcare professionals to work together to deliver the high-quality outcomes that patients need and expect."

In 2004, Aetna agreed to spend $470 million and CIGNA agreed to spend $540 million to settle similar charges on behalf of 900,000 physicians. CIGNA is the first insurer to announce a settlement with specialty providers in class-action litigation against the nation's leading managed-care companies.

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