Cigna LocalPlus $5.7M Ghost Network Settlement Gets Final Approval, But the Claim Deadline Has Passed

An Illinois federal judge gave final approval on March 24, 2026 to a $5.7 million settlement accusing Cigna of improperly advertising out-of-network providers as in-network for certain benefit plans it administered. If you had a Cigna LocalPlus plan and got hit with a surprise balance bill from a provider Cigna told you was in-network, you were likely eligible for a cash payment. The claim deadline was January 5, 2026 — and it has now passed. Here is what the settlement covered, what Cigna must do going forward, and what options remain for anyone who missed the deadline.

Quick Facts

Field	Detail
Settlement Amount	$5,700,000
Cash Fund for Claims	$300,000
Injunctive Relief Value	$4,642,152 (savings from no claim reprocessing)
Defendant	Cigna Health and Life Insurance Company
Who Qualified	Cigna LocalPlus plan members who received in-network EOBs for out-of-network providers
Claim Deadline	January 5, 2026 — CLOSED
Final Approval	March 24, 2026
Case Name	Hecht et al. v. Cigna Health and Life Insurance Co., No. 1:24-cv-05926
Court	U.S. District Court, Northern District of Illinois
Settlement Administrator	Cigna LocalPlus Settlement Administrator, Philadelphia, PA
Official Website	CignaLocalPlusSettlement.com
Administrator Phone	1-855-528-4217

Where Things Stand Now

1. A federal judge in Illinois granted final approval to the settlement on March 24, 2026, clearing the way for payments to go out to class members who filed valid, timely claims.
2. Payments will be mailed alongside a 1099 form to approved claimants after the claims administrator completes processing — no firm payment date has been announced.
3. The claim filing window is now permanently closed. Members who did not file by January 5, 2026 cannot recover under this settlement unless they pursue a separate legal remedy.

How Cigna Built a Doctor Directory Full of Doctors Who Weren’t There

A ghost network is exactly what it sounds like: a list of doctors and hospitals your insurance company calls “in-network” — but when you actually try to use them, they are not covered at all.

Named plaintiffs Andrew and Andrea Hecht alleged that in 2021 they received bills from a hospital stating it was out of network with Cigna, despite Cigna’s own directory indicating otherwise. After paying only what the in-network cost would have been, the hospital came back for the remaining balance — ultimately damaging the family’s credit.

The plaintiffs — participants in an employer-sponsored health plan administered by Cigna — alleged that inaccuracies in Cigna’s online provider directory created a ghost network, leading patients to unknowingly obtain care from providers later deemed out-of-network and to incur thousands of dollars in balance-billed charges as a result. Cigna’s defense was that the problem stemmed from a configuration error in its benefits system — not deliberate deception. The sole surviving claim at the time of settlement was for breach of fiduciary duty under ERISA.

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What Cigna Actually Agreed to Change — the Part Worth More Than the Cash

The cash fund in this settlement is relatively modest. The more significant piece for affected members is what Cigna must do — and stop doing — going forward.

About $4.6 million of the settlement amount goes toward injunctive relief: Cigna agreed not to reprocess claims it had already erroneously coded as in-network, meaning it cannot go back and reclassify those visits as out-of-network and send members new bills. That protection alone was valued at over $4.6 million in savings to class members.

Cigna also agreed to correct the system configuration error that caused the misclassification in the first place. And under the settlement terms, Cigna must improve how it communicates network status to members, providers, and brokers — making clear what is and is not covered before patients show up for appointments.

The Claim Deadline Passed — Here Is What You Can Still Do

If you filed a claim before January 5, 2026: Your claim is in processing. Contact the settlement administrator at 1-855-528-4217 or write to Cigna LocalPlus Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103 for updates on your claim status and payment timeline.

If you missed the deadline: You cannot recover under this specific settlement. However, you are not necessarily without options:

• File a complaint with your state insurance commissioner. If Cigna’s ghost network misled you and caused financial harm, a formal regulatory complaint creates an official record and can trigger an investigation. Find your state commissioner at naic.org.
• File a complaint with the U.S. Department of Labor. Since this case involved ERISA-governed employer health plans, the DOL’s Employee Benefits Security Administration handles complaints about plan administration failures. File at dol.gov/agencies/ebsa.
• Consult an ERISA attorney. The judge denied Cigna’s motion to dismiss the breach of fiduciary duty claim, ruling the amended complaint contained sufficient allegations to support the claim — which means individual ERISA fiduciary duty claims against insurers with ghost networks remain viable legal theories. An attorney can assess whether your situation supports a separate action.
• Dispute the balance bill directly. If you received a balance bill from a provider Cigna incorrectly listed as in-network, you have the right to dispute it through Cigna’s internal appeals process and, if that fails, through your state’s independent external review process.

Key Dates

Milestone	Date
Lawsuit Filed	July 2024
Amended Complaint Filed	March 2025
Judge Dismisses Some Claims	May 2025
Settlement Announced	September 2025
Preliminary Approval Granted	October 10, 2025
Claim Filing Deadline	January 5, 2026 — CLOSED
Opt-Out Deadline	January 5, 2026 — CLOSED
Final Approval Hearing	March 24, 2026
Final Approval Granted	March 24, 2026
Expected Payment Date	TBD — post-processing

Frequently Asked Questions

Can I still file a claim for the Cigna LocalPlus settlement?

 No. The claim deadline was January 5, 2026, and the court granted final approval on March 24, 2026. The filing window is permanently closed. If you missed it, see the options above for alternative remedies.

Is this settlement legitimate?

 Yes. An Illinois federal judge granted final approval to the $5.7 million settlement on March 24, 2026, following a hearing in the U.S. District Court for the Northern District of Illinois. The case is a matter of public court record under Case No. 1:24-cv-05926.

When will I receive my payment if I filed a claim?

 The settlement administrator will mail checks alongside 1099 tax forms once claim processing is complete. No specific payment date has been announced. Monitor CignaLocalPlusSettlement.com or call 1-855-528-4217 for updates.

Do I need a lawyer to get paid if I already filed a claim? 

No. If you submitted a valid claim before the January 5 deadline, payment will come automatically by mail once processing is complete. No further action is required.

What is a ghost network and why is it illegal? 

A ghost network is a provider directory that lists doctors or hospitals as in-network when they will not actually accept your insurance. The lawsuit alleged that Cigna’s failure to resolve contradictory network status information breached its fiduciary duties of care and loyalty under ERISA — federal law that governs employer-sponsored health plans. Misleading members about coverage violates those duties.

Will my settlement payment affect my taxes?

 If your claim is approved, Cigna will mail a check along with a 1099 form. That means the IRS will know about the payment. Whether it is taxable depends on whether it reimburses a medical expense you previously deducted. Consult a tax professional if you are unsure.

What if I missed the claim deadline?

 The deadline is closed and no extensions have been announced. Your best remaining options are filing a complaint with your state insurance commissioner, filing with the DOL’s Employee Benefits Security Administration, or consulting an ERISA attorney about whether a separate legal claim is viable for your situation.

Does this settlement affect my current Cigna coverage?

 As part of the settlement, Cigna corrected the system configuration error that caused providers to be misclassified and agreed not to reprocess previously approved in-network claims as out-of-network. Your current coverage is unaffected by the settlement itself, but if you believe your current plan still contains inaccurate provider directory listings, contact Cigna member services directly to verify in-network status before any appointment.

Sources & References

• U.S. District Court, Northern District of Illinois — Hecht et al. v. Cigna Health and Life Insurance Co., Case No. 1:24-cv-05926 (available via pacer.gov)
• Official Settlement Website — CignaLocalPlusSettlement.com

Last Updated: March 26, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.