Cigna has agreed to a $1.07 million class action settlement, and some LocalPlus plan members may be able to get cash—but only if they file a claim by January 5, 2026.
This post explains who qualifies, what you can get, and what to do next.
Why This Lawsuit Exists?
This class action alleges that Cigna misclassified certain out-of-network providers as in-network due to an error in how LocalPlus plan benefits were configured in Cigna’s system.
As a result, some members:
Received incorrect Explanations of Benefits (EOBs), and
Were later hit with balance bills they shouldn’t have received if the provider had truly been in-network.
Cigna denies all wrongdoing, and the Court has not ruled on the merits—but the case has been settled.
Who Qualifies for the Settlement?
You may be a Class Member if all of the following apply:
You were covered under a LocalPlus health plan
Cigna provided administrative services for that plan
You received medical treatment
Your EOB said the provider was in-network
The provider was actually out-of-network due to a system configuration mistake
You received a balance bill (not copays, coinsurance, or deductibles)
If you received a Notice, at least one of your claims was affected—but not necessarily all of them.
How Much Money You Can Get?
There are two types of benefits in this settlement:
Cash Payments (Claims Required)
$300,000 total is available for cash payments
Only for Class Members who:
Received a balance bill, and
Submit a valid claim with proof
If claims exceed $300,000, payments will be prorated
Automatic Protection (No Claim Needed)
Cigna agreed not to reprocess affected claims as out-of-network
This protects Class Members from up to $4,642,152.03 in potential balance billing
This benefit applies automatically to all Class Members
Your Options (Quick View)
| Option | What It Means | Deadline |
|---|---|---|
| Make a Claim | Request cash for balance bills | January 5, 2026 |
| Exclude Yourself | Keep right to sue Cigna separately | January 5, 2026 |
| Object | Tell the Court why you disagree | January 5, 2026 |
| Do Nothing | No payment, but still bound by settlement | — |
| Attend Final Hearing | Ask to speak about fairness | March 24, 2026 |
How to File a Claim?
To receive money, you must file a claim.
You’ll need:
A balance bill (including interest, penalties, or collection fees), or
A signed statement that the payment will be used to satisfy the balance bill
How to submit:
Online or by mail
Must be submitted or postmarked by January 5, 2026
