Cigna $1.07 Million Settlement Resolves Alleged ‘Ghost Network’ LocalPlus Plan Lawsuit

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Cigna has agreed to a class action settlement to resolve a lawsuit that claimed the health and life insurance company misclassified some healthcare providers as in-network for LocalPlus Plan members when they were, in fact, not covered, creating a purported “ghost network” and leading consumers to pay higher out-of-pocket medical expenses.

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The Cigna settlement received preliminary approval from the court on October 10, 2025 and covers all individuals covered under a Cigna LocalPlus Plan who underwent treatment at a healthcare provider that Cigna promoted as in-network when the provider was, in fact, out of network due to a configuration mistake in Cigna’s benefits system.

The court-approved website for the Cigna class action lawsuit settlement can be found at https://www.CignaLocalPlusSettlement.com/.

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According to the settlement website, Cigna LocalPlus Plan settlement class members who submit a valid, timely claim form with documented proof of a balance bill or signed affirmation that they will use the settlement payout to satisfy their balance bill are eligible to receive a one-time cash payout based on the amount they were wrongfully charged. The settlement agreement notes that the amount each class member may receive will depend on the total amount of each person’s balance bill and how many total valid claims are submitted.

Settlement documents outline that monetary benefits from class members will be paid from a portion of the settlement fund totaling $300,000, and, if the total amount of valid claims is over $300,000, cash payments may become prorated.

According to the settlement website, injunctive relief from the deal is expected to save Cigna settlement class members approximately $4,642,152.03. From the settlement site:

“The Constructive Common Fund consists of $4,642,152.03 in injunctive relief benefits, $300,000 in claims made cash benefits, $20,000 in Class Representative Incentive Awards, and $750,000 in attorneys’ fees and costs to the attorneys representing Plaintiffs and the Settlement Class (‘Class Counsel’).”

Cigna settlement class members will receive their payout via check, which will be accompanied by a 1099 form for miscellaneous tax purposes, the settlement agreement says.

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As part of the class action settlement, Cigna has also agreed to correct the plan configuration error that allegedly caused the misclassification of out-of-network plans and not reprocess affected health benefit claims from in-network to out-of-network.

To submit a Cigna LocalPlus settlement claim form online, class members can head to this page and enter the class member ID and confirmation code provided in their copy of the settlement notice. Consumers who believe they may be a Cigna settlement class member but did not receive a notice should contact the settlement administrator to confirm their identity and receive their login details.  

Alternatively, class members may download a PDF of the claim form to print, fill out and return by mail to the address listed near the bottom of the first page of the document.

All Cigna LocalPlus claim forms must be submitted online or by mail by January 5, 2026.

The court will determine whether to grant final approval to the Cigna settlement at a hearing on March 24, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The Cigna class action lawsuit alleged that the insurance company wrongfully classified certain healthcare providers and treatment centers as in-network to LocalPlus Plan members when they were not actually covered, which caused consumers to be billed for treatment that was not covered by insurance, as promoted.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest class action settlements.