DOJ brings lawsuit against Cigna for allegedly submitting $1.4 billion in false Medicare Advantage claims

The Office of Justice on Tuesday submitted a lawsuit versus well being insurance provider Cigna alleging that the organization submitted fraudulent Medicare Benefit claims to the Facilities for Medicare and Medicaid Products and services.

The go well with claims that between 2012 and 2017 Cigna used incorrect diagnostic codes for well being conditions that its members did not have, had been not recorded in health-related data and had been not primarily based on clinically responsible info. Around the course of that time, CMS overpaid Cigna by more than $1.four billion, according to the DOJ.

“[Cigna] intentionally misrepresented these well being conditions as element of a widespread plan to coax CMS into having to pay a better capitated level on behalf of Medicare beneficiaries enrolled in [Cigna’s] Medicare Benefit plans,” the DOJ reported in its declare.

Cigna made its 360 Method in 2012, in which program members would acquire an “enhanced edition of an yearly wellness stop by” from their main treatment health practitioner. The plan was reported to close gaps in treatment and detect well being conditions that had been going undetected.

“Even although [Cigna] pitched 360 in this method, excellent of treatment was not the fundamental function of the 360 plan,” the DOJ reported. “The plan centered on a business design devised by [Cigna] in which 360 would be used to find well being conditions that could elevate the hazard scores of the System Users and hence improve the regular capitated payments that CMS paid to [Cigna].”

The lawsuit also alleges that Cigna sought out companies that had been unfamiliar with patients’ well being historical past to take part in the 360 plan. As soon as collaborating companies done a specific volume of 360 visits, they been given a $a hundred and fifty bonus for every stop by and had been paid $1,000 every single time they attended a 360 coaching seminar, the DOJ reported.

The office is searching for an amount equal to a few times the amount of the $1.four billion in damages as very well as a civil penalty of $11,000 for every single violation.


Below Medicare Benefit, CMS pays well being insurers a regular capitated level primarily based on a beneficiary’s hazard rating, which is decided primarily based on the member’s relative well being standing.

In this hazard adjustment design, insurers been given bigger compensation for program members that have serious and pricey well being conditions.

Cigna has reported that it will defend by itself versus unjustified allegations.

THE Greater Craze

Earlier this yr, the DOJ strike Anthem with a very similar lawsuit involving fraudulent Medicare Benefit hazard scores.

The scenario accused Anthem of a a single-sided assessment of a beneficiary’s health-related chart to find additional codes to post to CMS to attain profits, devoid of also determining and deleting inaccurate diagnostic codes. This produced $100 million or more a yr in additional profits for Anthem, the DOJ reported.

ON THE Document

“We are very pleased of our field-major Medicare Benefit plan and the method in which we conduct our business. We will vigorously defend Cigna versus all unjustified allegations,” Cigna told Healthcare Finance Information.

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