U.S. sues insurer Cigna Corp for inflating Medicare payments
Medicare #Medicare
NEW YORK, Oct 17 (Reuters) – The United States has sued insurer Cigna Corp (CI.N) for overcharging the Medicare Advantage program, federal prosecutors in Manhattan said on Monday.
Prosecutors said Cigna obtained tens of millions of dollars in Medicare funds by submitting false diagnoses for patients in cases where providers retained by the company had not conducted the necessary tests.
“Cigna knew that, under the Medicare Advantage reimbursement system, it would be paid more if its plan members appeared to be sicker,” Damian Williams, the top federal prosecutor in Manhattan, said in a statement.
Medicare Advantage is a program in which private insurers provide coverage to patients who opt out of the traditional Medicare program, a U.S. government-run health plan for seniors.
Register now for FREE unlimited access to Reuters.com Register
Reporting by Luc Cohen in New York
Our Standards: The Thomson Reuters Trust Principles.