Cigna Healthcare, a major player in the health insurance industry, is now at the center of a federal class action lawsuit over claims that the company has been using AI algorithms to improperly deny customer claims. The lawsuit claims that Cigna’s system denied about 300,000 pre-approved claims, spending an average of 1.2 seconds to deny each claim.
Axios reports that major health insurance provider Cigna Healthcare is currently the target of a federal class action lawsuit. According to the lawsuit, the firm has been violating California law by utilizing AI algorithms to refuse payments to clients as part of a largely automated claims decision process.