Cigna COVID-19 Test $2.9M Class Action Settlement

If you are a Cigna plan member or dependent of a Cigna plan member who submitted a claim to Cigna for reimbursement of a COVID-19 test between March 27, 2020, and September 1, 2023, and your healthcare plan was governed by ERISA, you may be eligible to claim a cash payment from a class action settlement.

Cigna Health and Life Insurance Company has agreed to pay $2.91 million to settle a class action lawsuit alleging violations of the Employee Retirement Income Security Act of 1974 (ERISA). The lawsuit, filed by plaintiff Jeremy Hockenstein, accused Cigna of improperly reimbursing members less than the full amount billed by healthcare providers for COVID-19 tests.

Who is eligible for a Cigna settlement payment?

Class members are as follows:

• You were enrolled in a Cigna ERISA-governed employee welfare benefit insurance plan.
• You or your dependent received COVID-19 testing services between March 27, 2020, and September 1, 2023.
• You submitted a claim to Cigna for reimbursement of the COVID-19 test.
• Cigna reimbursed you less than the full amount billed by the healthcare provider for the COVID-19 test.

How much will the class action payout be?

Class members will receive a pro rata cash payment, covering approximately 85% of the difference between your provider's bill and what Cigna reimbursed you.

How to claim a class action rebate

If you spent less than $500 on any Covid-19 test, you do not need to take any action. You will automatically receive a payment.

If you paid more than $500 for a COVID-19 test, you must file a claim online or download the PDF claim form.pdf) to print and mail to the settlement administrator.

Settlement Administrator's mailing address: Cigna Covid-19 Settlement, Attn: Claim Forms, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103

Required proof

Claims for COVID-19 tests costing more than $500, you must provide supporting documentation:

• Receipt or similar document from the healthcare provider or billing handler.
• Bank, credit card, or debit card record showing provider's name, date of service, service provided, amount billed, and confirmation of payment.
• Notice ID and Confirmation Code provided on notice required to submit a claim.

Claim payment options

Claimants can select from the following:

• PayPal
• Venmo
• Zelle
• Virtual prepaid card
• Paper check mailed to address provided

$2.91 Million class action settlement fund

The settlement fund of $2,908,683 will include:

• Settlement administration costs: To be determined
• Attorneys' fees and expenses: Up to $727,170.75
• Service award to Plaintiff: Up to $10,000
• Payments to valid class members: Remaining settlement funds after deductions

Important dates

• Fairness Hearing: May 29, 2025
• Deadline to File a Claim: April 29, 2025
• Deadline to Exclude Yourself: April 29, 2025

When is the Cigna COVID-19 test settlement payout date?

The court will hold a fairness hearing on May 29, 2025. Payments to approved class members will be issued approximately 51 days after the date the court grants final approval to the settlement.

Why was this class action lawsuit filed and settled?

The lawsuit was filed because the plaintiff alleged that Cigna violated ERISA by failing to fully reimburse members for COVID-19 tests. Cigna denies these allegations and maintains that it acted lawfully, but agreed to settle in order to avoid the expense of continued litigation.

Sources

1. Official Settlement Website
2. Class Notice.pdf)
3. Settlement Website FAQ Page