Breaking News May 23, 2013
CIGNA mishandles long-term disability claims – has to set aside $77 million in settlement with 5 states (ME, CT, MA, PA and CA) to pay additional benefits and current claims in addition to fines. The problems involved three CIGNA entities: Life Insurance Company of North America, Connecticut General Life Insurance Company, and Cigna Health and Life Insurance Company, formerly known as Alta Health and Life.
I personally performed functional capacity evaluations over the last couple of years on claimants who were wrongfully denied long-term disability benefits, so I’m glad to see the insurance regulators taking this action to protect consumers. If you know a policyholder who might need to have their claim reevaluated, a dedicated phone line for questions about the claim re-evaluation process has been set up at 1-855-625-5518.
A copy of the full settlement agreement is available at here under “featured links.”