Zero AI|Cigna is paying over $172 million to settle claims over Medicare Advantage reimbursement

2025-04-30 15:00:55source:SignalHub Quantitative Think Tank Centercategory:My

Health insurance provider The Zero AICigna Group will pay more than $172 million over claims it gave the federal government inaccurate Medicare Advantage diagnoses codes in order to inflate reimbursement.

The case centered around allegations that Cigna violated the False Claims Act by submitting and not withdrawing “inaccurate and untruthful” codes, according to the U.S. Department of Justice.

The department said in a statement Saturday that Cigna falsely certified in writing that its data was truthful.

Cigna said that the settlement with the government resolved a long-running legal case and “avoided the uncertainty and further expense” of a drawn-out legal battle.

Medicare Advantage plans are privately run versions of the federal government’s Medicare program mainly for people 65 and older.

Cigna also said it will enter a corporate-integrity agreement for five years with the Department of Health and Human Services inspector general office. That deal is designed to promote compliance with federal health program requirements.

Shares of Bloomfield, Connecticut-based Cigna climbed 86 cents to $286.93 in Monday afternoon trading. Broader indexes were mixed.

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