9th Circ. Revives $8.6M Reimbursement Suit Against

By Kellie Mejdrich (January 18, 2022, 4:48 PM EST) — The Ninth Circuit ruled that a lower court erred when it tossed a lawsuit accusing Cigna of violating federal benefits law by denying $8.6 million worth of reimbursement requests for out-of-network mental health and substance abuse treatment from a health care provider that went bankrupt, finding that a corporate successor had a green light to sue. 

A three-judge panel issued a published opinion Friday reversing a lower court’s dismissal of the case, and ruling that a successor to a company that claimed Cigna drove it into bankruptcy had standing to pursue an Employee Retirement Income Security Act suit over the insurer’s…


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