Cigna LocalPlus Out-of-Network $5.71M Class Action Settlement
By Steve Levine
Published: December 1, 2025
Status: Open to Claims
Settlement Amount: $5,712,152.03 total
Claim Form Deadline: January 5, 2026
Proof required: Yes (balance bill required)
What is the Cigna LocalPlus Class Action About?
You may be part of a new $5.71 million class action settlement reached with Cigna Health and Life Insurance Company over allegations that certain out-of-network health care providers were incorrectly treated as in-network for members enrolled in LocalPlus plans Cigna administered, which allegedly led to unexpected balance bills for some patients.The class action lawsuit claims that Cigna violated the Employee Retirement Income Security Act of 1974 (ERISA) by miscoding some LocalPlus claims as in-network when they should have been processed as out-of-network. According to the complaint, this system configuration error meant some members did not receive full protection from out-of-network charges and were later billed directly by providers even though their Explanation of Benefits showed in-network care.
Cigna denies all wrongdoing and the Court has not decided who is right. Instead, both sides agreed to a settlement so that eligible members can receive relief and the risks and costs of trial can be avoided.
What is the Total Settlement Amount?
The settlement creates a constructive common fund valued at approximately $5,712,152.03. That figure includes:• About $4,642,152.03 in injunctive relief, reflecting the value of Cigna agreeing not to reprocess certain claims from in-network to out-of-network status, which protects class members from additional balance bill liability.
• $300,000 in cash benefits to pay approved claims for qualifying balance bills.
• $20,000 in proposed service awards for the two class representatives ($10,000 each), subject to Court approval.
• Up to $750,000 in attorneys fees and costs for class counsel, subject to Court approval.
The constructive common fund structure means the value includes both cash payments and important non-cash protections for the class.
How Do I Qualify For a Payout?
To qualify for a cash payment, you must meet these key criteria:• You were covered by health benefits under a LocalPlus plan for which Cigna provided administrative services.
• You received medical treatment and an Explanation of Benefits (EOB) from Cigna showed your doctor, orprovider as being "in-network".
• In reality, the provider was out-of-network because of a mistake in how your Cigna "LocalPlus" benefits were configured in Cigna's system.
• You received a separate balance bill from the provider for the difference between the provider's billed charge and the allowed amount determined by Cigna, because the provider did not honor the in-network treatment of the claim, allegedly because of Cigna's mistaken system.
How Much Can I Get Paid?
Cash payments come from a $300,000 claims made fund reserved for class members who submit valid balance bill claims.If the total dollar amount of all approved claims is $300,000 or less, each eligible class member can receive up to the full amount of their documented balance bill, including certain related interest, penalties, and debt collection fees directly tied to that bill.
If the total value of valid claims is more than $300,000, the cash fund will be split on a pro rata basis. That means each approved claimant will receive a proportional share of the $300,000 fund instead of the entire amount of their balance bill. The exact payout per person will depend on how many people file valid claims and the size of each balance bill.
How Do I File a Claim?
To request a payment, you must submit a completed Claim Form with supporting documentation by the deadline. You can:• File online at the official settlement website: CignaLocalPlusSettlement.com
• Or mail a paper Claim Form to the settlement administrator at the address provided in your notice and on the website.
The Claim Form will ask for information such as:
• Your name, mailing address, and contact details.
• Your Cigna member ID and Cigna claim ID (which will be listed in your notice letter).
• A copy of your balance bill and either proof that you paid it, or a signed affirmation that you will use any settlement payment solely to satisfy that bill and related charges by paying your provider, debt collector, or assignee.
If your claim is approved, the settlement administrator will mail you a check along with a Form 1099 for tax reporting.
What is the Claim Form Deadline?
The last day to submit a claim is:January 5, 2026
Online claims must be submitted on or before that date. Mailed Claim Forms must be postmarked by January 5, 2026.
What are the Important Dates?
Here are the key deadlines listed in the settlement notice:• Claim submission deadline: January 5, 2026
• Exclusion (opt out) deadline: January 5, 2026
• Objection deadline: January 5, 2026
• Final Approval Hearing: March 24, 2026 at 11:00 a.m.
These dates can change if the Court updates the schedule, so it is a good idea to check the official settlement website for any new information.
When is the class action settlement payment date?
Settlement payments will not go out until:• The Court grants final approval of the settlement at or after the March 24, 2026 hearing, and
• Any appeals are resolved and the settlement becomes fully effective.
Because appeals can take time, there is no exact payment date yet. The settlement administrator will provide updates on the official website as the case moves forward.
Is Proof Required to File a Claim?
Yes. This settlement requires documentation. To get a cash payment, you must provide:• Proof of a qualifying balance bill from your provider that is different from your usual copayments, coinsurance, or deductibles.
• Either proof that you already paid the balance bill (including any related interest, penalties, or collection fees you are claiming) or a signed affirmation that you will use the settlement payment only to satisfy the balance bill and related charges.
Claims without sufficient proof may be rejected, so it is important to gather and submit complete documentation with your Claim Form.
How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:How Many People are Affected?
The notice explains that only a small number of claims were affected by the LocalPlus configuration error. If you received a personalized letter or email, it means at least one of your claims was impacted, but not necessarily all of your claims with Cigna. The exact number of impacted members has not been publicly disclosed.When Will this Class Action Be Certified?
The Court has already conditionally certified a settlement class for this case for settlement purposes only. Final certification of the class will occur if and when the Court grants final approval of the settlement at or after the March 24, 2026 Final Approval Hearing.What are the Odds This Class Action is Settled?
The parties have reached a proposed settlement and the Court has authorized notice to be sent, which is a significant step toward resolution. However, the settlement is not final until the Court grants final approval and any appeals are resolved. While many class action settlements are ultimately approved, there is no guarantee. Class members should follow updates on the official settlement website for the latest status.What is the Anticipated Settlement Amount?
The total constructive common fund is approximately $5,712,152.03, which includes both monetary and non-monetary relief. Of that amount, $300,000 is set aside for direct cash payments to class members who submit valid balance bill claims. The rest reflects injunctive relief, class representative service awards, and requested attorneys fees and costs, all subject to Court approval.How much will Each Class Action Claimant be Paid?
There is no fixed per-person payment. Instead, payouts will be calculated based on:• The total amount of valid, approved balance bill claims submitted by class members, and
• The $300,000 cash fund available to pay those claims.
If total valid claims are at or below $300,000, class members can receive up to the full amount of their documented balance bill, including certain related fees. If the total is above $300,000, each person will receive a pro rata share of the fund, so individual payments will be a proportion of the balance bill rather than the full amount.
Claim Form Website: CignaLocalPlusSettlement.com
Submit Claim
Official Settlement Notice
Sources
• Official Settlement Website: www.CignaLocalPlusSettlement.com• U.S. District Court, N.D. Ill., E.D., Andrew Hecht and Andrea Hecht v. Cigna Health and Life Insurance Company, Case No. 1:24-cv-05926
Filing Class Action Settlement Claims
Please submit only truthful information. False claims can be rejected and may carry penalties. If you are unsure whether you qualify, review the official notice or contact the settlement administrator. OpenClassActions.com is a consumer news site and is not a settlement administrator or a law firm.
For more class actions keep scrolling below.
FanDuel & DraftKings - Online Sports Betting Addiction Lawsuits
Status: Open
Submit Claim
RoundUp Cancer Lawsuits: How to Qualify
Status: Open to Claims
Submit Claim
$5.5M Mid America Pet Food Settlementt
Deadline: February 5, 2026
Submit Claim
$30M YouTube Privacy Settlement
Deadline: January 21, 2026
Submit Claim
$4M Frozen Waffles Class Action Settlement
Deadline: Dec 16, 2025
File Claim
$1.9M PetSafe e-Collar Settlement
Deadline: Dec 2, 2025
Payout: $30 - $420
| Class Action Summary | |
| Status | Proposed Settlement |
|---|---|
| Claim Form Deadline | January 5, 2026 |
| Settlement Amount | $5,712,152.03 total (includes $300,000 cash fund and injunctive relief) |
| Category | Health Insurance and ERISA |
| Estimated Payout per Person | Varies. Up to full balance bill amount if total valid claims are at or below $300,000, otherwise pro rata share of the $300,000 fund. |
| Case Number | 1:24-cv-05926 |
| Case Title | Andrew Hecht and Andrea Hecht v. Cigna Health and Life Insurance Company |
| Court | U.S. District Court, Northern District of Illinois, Eastern Division |
| Final Approval Hearing | March 24, 2026 at 11:00 a.m. |
| Claim Website | CignaLocalPlusSettlement.com |