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Medical Provider Can Use ERISA to Sue Cigna for Covid Test Costs

May 18, 2022, 6:53 PM

A New Jersey medical practice advanced its lawsuit accusing Cigna Health & Life Insurance Co. of failing to pay for $1.5 million in Covid-19 tests when a federal judge ruled Wednesday that the practice could sue under ERISA.

The Employee Retirement Income Security Act authorizes private lawsuits challenging an insurer’s alleged failure to cover Covid testing costs as required by a pair of federal laws passed in the early stages of the pandemic, Judge Kevin McNulty of the US District Court for the District of New Jersey said.

The laws—the Families First Coronavirus Response Act and the Coronavirus Aid, Relief ...