Rich Collins Discusses $12.7 Million Cigna Underpayment Lawsuit on Behalf of 10 AGG Clients in Behavioral Health Business

AGG Healthcare partner Rich Collins was quoted in Behavioral Health Business discussing a lawsuit brought by 10 California substance use disorder (“SUD”) treatment providers against Cigna entities seeking approximately $12.7 million in alleged underpayments for behavioral healthcare services. AGG is one of the law firms representing the providers in the case.

The providers allege that Cigna improperly repriced reimbursement claims for addiction treatment services. Rich explained that reimbursement practices can have consequences beyond provider finances, particularly when patients are left responsible for a larger share of the cost of care.

“When insurance corporations underpay for mental health and substance use disorder services, the result is fewer treatment options, reduced access to care, and greater burdens on patients and families already facing a healthcare crisis,” Rich said.

Rich also noted that reimbursement rates falling below the usual and customary value can create a significant economic barrier to behavioral healthcare treatment. “Mental health and addiction treatment are essential healthcare services and should be reimbursed and covered accordingly,” he said.

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