CarePoint Trustee Sues Cigna to Recoup Underpaid Medical Claims

A CarePoint Health trust sued Cigna Health and Life Insurance Co., arguing the insurer systematically underpaid three New Jersey safety net hospitals for essential emergency and elective medical services by more than $114 million.

Cigna reimbursed out-of-network services at less than 25% of established rates between 2016 and 2021 and profited from the underpayments, Province Fiduciary Services LLC told the US Bankruptcy Court for the District of Delaware in a complaint filed Wednesday. Province represents a litigation trust set up through CarePoint’s bankruptcy plan to recover funds for creditors.

“Many of the Underpaid Claims involved lengthy and complex hospital care ...