Suit Saying Cigna Underpays Out-of-Network Claims Gets Trimmed

A proposed class action accusing Cigna Behavioral Health Inc. of conspiring with a third-party vendor to underpay claims for out-of-network mental health treatments is moving forward after a California federal judge trimmed certain claims under federal benefits and racketeering law.

The plan participants can press claims for wrongfully denied benefits and fiduciary breach under the Employee Retirement Income Security Act, Judge Edward J. Davila of the U.S. District Court for the Northern District of California held Tuesday. But other ERISA claims and claims under the Racketeer Influenced and Corrupt Organizations Act must be dismissed, he said.

Cigna is accused of ...