NU Online News Service, Nov. 27, 10:13 a.m. – CIGNA Corp., Philadelphia, says its CIGNA HealthCare managed care unit has agreed to pay more than $50 million to settle a dispute with doctors over the way the company handles claims.
The proposed settlement would resolve Kaiser vs. CIGNA, a national class-action lawsuit filed in a state court in Illinois that recently moved to federal court. But the settlement agreement could cover the better-known suits now being heard in the U.S. District Court in Miami as well as suits in other state and federal courts, CIGNA says.
The court still must approve the settlement agreement, CIGNA says.
CIGNA estimates that the cost of the settlement would be about $50 million after taking savings on income taxes into consideration. But the estimate includes “insurance recoveries that CIGNA expects to receive,” CIGNA says.
CIGNA did not say how big the insurance recoveries might be.