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Third Circuit Revives Part of Hospital Network's ERISA Claim Against Cigna

The Third Circuit Court of Appeals has reinstated certain contract claims brought by a New Jersey hospital network against Cigna, which is accused of underpaying out-of-network reimbursements by $114 million.

Reese Pruett

July 17, 20261 min read

Legal Dispute - illustration, Jake Team LLC
Legal Dispute - illustration, Jake Team LLC

The Third Circuit Court of Appeals on Thursday partially reinstated ERISA contract claims in a lawsuit filed by a New Jersey hospital network against Cigna. The appellate court backed the dismissal of other aspects of the case while allowing specific allegations to proceed.

The lawsuit, originally filed in August 2022, centers on Hudson Hospital Opco LLC and related entities. The hospital network alleges that Cigna Health and Life Insurance Company underpaid out-of-network reimbursements by a total of $114 million. The case was later appealed to the Third Circuit, with filings recorded in October 2024.

The nature of the suit is classified under labor and employee retirement income security act regulations. The case remains active in the New Jersey court system following the Third Circuit's recent ruling.

Further details regarding the specific claims that were dismissed or the full scope of the revived allegations were not provided in the available reporting.

CIGNA employs about 800 people in Denison, according to local government records.

Source: Law360.

Sources

https://www.law360.com/healthcare-authority/policy-compliance/articles/2502180/3rd-circ-partly-revives-hospitals-erisa-suit-against-cigna

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Reese Pruett

Reese Pruett reports on local business, new openings, and economic development in Denison.

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