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

The Department of Justice on Tuesday submitted a lawsuit from well being insurance provider Cigna alleging that the business submitted fraudulent Medicare Gain claims to the Facilities for Medicare and Medicaid Providers.

The accommodate claims that amongst 2012 and 2017 Cigna utilized inappropriate diagnostic codes for well being situations that its associates did not have, were being not recorded in health-related documents and were being not primarily based on clinically reputable info. Around the training course of that time, CMS overpaid Cigna by more than $one.4 billion, in accordance to the DOJ.

“[Cigna] deliberately misrepresented these well being situations as aspect of a widespread scheme to coax CMS into paying out a higher capitated price on behalf of Medicare beneficiaries enrolled in [Cigna’s] Medicare Gain programs,” the DOJ stated in its claim.

Cigna established its 360 System in 2012, in which program associates would receive an “enhanced variation of an yearly wellness take a look at” from their major care health practitioner. The program was stated to close gaps in care and detect well being situations that were being likely undetected.

“Even while [Cigna] pitched 360 in this fashion, excellent of care was not the fundamental function of the 360 program,” the DOJ stated. “The program centered on a business enterprise design devised by [Cigna] in which 360 would be utilized to uncover well being situations that could elevate the hazard scores of the Prepare Associates and for that reason raise the regular capitated payments that CMS paid out to [Cigna].”

The lawsuit also alleges that Cigna sought out providers that were being unfamiliar with patients’ well being record to take part in the 360 program. The moment collaborating providers done a specific quantity of 360 visits, they gained a $a hundred and fifty reward for every take a look at and were being paid out $one,000 each and every time they attended a 360 coaching seminar, the DOJ stated.

The office is trying to get an total equal to a few situations the total of the $one.4 billion in damages as nicely as a civil penalty of $eleven,000 for each and every violation.


Beneath Medicare Gain, CMS pays well being insurers a regular capitated price primarily based on a beneficiary’s hazard rating, which is identified primarily based on the member’s relative well being status.

In this hazard adjustment design, insurers gained increased compensation for program associates that have critical and highly-priced well being situations.

Cigna has stated that it will protect alone from unjustified allegations.

THE Bigger Pattern

Before this year, the DOJ strike Anthem with a related lawsuit involving fraudulent Medicare Gain hazard scores.

The scenario accused Anthem of a a single-sided evaluate of a beneficiary’s health-related chart to uncover extra codes to post to CMS to gain earnings, without also identifying and deleting inaccurate diagnostic codes. This created $one hundred million or more a year in extra earnings for Anthem, the DOJ stated.

ON THE Report

“We are very pleased of our sector-main Medicare Gain program and the fashion in which we carry out our business enterprise. We will vigorously protect Cigna from all unjustified allegations,” Cigna advised Healthcare Finance News.

Twitter: @HackettMallory
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