Health insurance giant Cigna is facing a lawsuit accusing the company of using computer algorithms to automatically deny claims to hundreds of thousands of people, thereby violating a California rule mandating each claim to be properly examined.
The class-action lawsuit, filed on Monday at a federal court in Sacramento, insists that Cigna breached the rights of its insurance holders. California Insurance Regulations require insurance firms like Cigna to conduct a “thorough, fair, and objective” investigation of each medical expense bill submitted as part of a claim, the lawsuit points out.
