Cigna Sued Over Ground Ambulance Payment Practices
A proposed class action lawsuit accuses Cigna of underpaying out-of-network claims to boost corporate savings.
Updated on Oct. 13, 2026 in Healthcare
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Daniel Kreutzmann has filed a proposed class action lawsuit against Cigna Health and Life Insurance Company. The complaint alleges the insurer intentionally underpaid out-of-network ground ambulance services to inflate its own profits.
Why it matters
The litigation claims Cigna breached fiduciary duties under federal law by suppressing payments to ambulance providers. The legal challenge suggests these practices aimed to increase shared savings under contracts with self-funded employer health plans.
The lawsuit, filed as a proposed class action, alleges that Cigna underpaid out-of-network claims to increase its retained shared savings. The specific volume of impacted ambulance claims across the national provider network has not been disclosed.
The players
Daniel Kreutzmann
He is the plaintiff who filed the proposed class action lawsuit against Cigna Health and Life Insurance Company.
Cigna Health and Life Insurance Company
It is a major global health services organization that provides insurance coverage and managed healthcare plans.
The details
The lawsuit accuses Cigna of engaging in prohibited transactions and violating its fiduciary duties under the Employee Retirement Income Security Act. By allegedly suppressing payments to out-of-network providers, the suit claims the insurer maximized its internal financial gains at the expense of employer health plans.
Timeline
The lawsuit was filed in federal court on October 12, 2026.
Market Landscape
This litigation highlights growing scrutiny over how major insurers manage payments for out-of-network services under the Employee Retirement Income Security Act. It positions the plaintiff against the broader industry trend of maximizing shared savings within self-funded employer health plans.
If the court finds merit in these claims, members of employer-sponsored health plans could see shifts in how insurers process and settle out-of-network medical bills. The outcome may influence the long-term cost structures of self-funded health plans provided by employers.
The takeaway
Patients who rely on out-of-network ambulance services should monitor their explanation of benefits for unusual payment discrepancies. This case serves as a reminder of the complex financial interactions between insurance carriers and third-party healthcare providers.
Further reading
For more on industry oversight, see our Healthcare section.
Source note: This article includes information reported by Bloomberglaw.
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