Cigna’s Improper OK of Bariatric Surgery No Defense to Repayment

A woman who received a medical malpractice settlement after a botched bariatric surgery can’t block Cigna Healthcare Inc. from sharing in the settlement by arguing that the insurer’s improper preauthorization contributed to her injuries, an Ohio federal judge ruled.

The Cigna plan allows the insurer to recoup benefits paid on behalf of participants who later receive third-party settlements for their injuries, Judge Pamela A. Barker of the U.S. District Court for the Northern District of Ohio said Tuesday. The word “benefits” is a broad term that encompasses money paid for medical services, even if a dispute arises over whether those ...