A class action has been filed in federal court in Connecticut against national health insurance company, Cigna, accusing the company of overcharging its customers for medications. Specifically, the plaintiffs are alleging that the company is collecting so called “claw-back fees” from insureds by grossly overcharging for prescription drugs. Essentially, the plaintiffs are accusing Cigna of upcharging customers up to 1,000% more than the fee paid by the company to the pharmacy.
The rationale of the plaintiffs’ argument is that the claw-backs go against the entire purpose of an insurance copay. A copay, the plaintiffs argue, should never cost more than the medication would without insurance. However, Cigna has been able to continue this unsavory practice of cheating its customers due to the fact that the majority of consumers and even the majority of pharmacists are generally unaware of the true cost of medications without insurance.
The complaint cites to specific instances of fraud on the part of Cigna, including an incident where a patient paid $20 for a medication, which actually costs only $2. It is alleged that the difference between the actual cost of the medication and the cost charged to the patient was kicked back to Cigna Plaintiffs accuse Cigna of violating the Employee Retirement Income Security Act and the Racketeer Influenced and Corrupt Organizations Act. Defendant has publically responded to these accusations by assuring the public that drug prices are fair and competitive and have been carefully negotiated with pharmacies.
The case is: Negron v. Cigna Corp., D. Conn., No. 3:16-cv-01702
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