Cigna Hits Health Diagnostic Laboratory With Major Lawsuit
Health Diagnostic Laboratory faced a lawsuit from Cigna Health and Life Insurance Co. for defrauding the insurance company out of more than $84 million. Health Diagnostic was ultimately sold due to the investigation and patients have been balanced billed by bankruptcy lawyers for treatments dating back to 2009.
The lab was said to be attracting patients by waiving co-payments, co-insurance or deductibles. They were also engaging in "other unlawful conduct," such as paying fees to healthcare providers for referrals.
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Phantom Rates
Cigna alleged the Virginia based lab was charging exorbitant amounts.
Fee Forgiveness
Cigna alleged that Health Diagnostic lab was allowing patients to not pay their full bill while still charging Cigna higher amounts for the treatments.
Unfair Advantage
By charging patients minimal charges Health Diagnostic Laboratory created a major unfair advantage over other Out-Of-Network providers that are balance billing properly.