AeroMD Files $9 Million Lawsuit Against Cigna for Denial of Access to Air Ambulance Services and Payment Failures

  • Ernice Gilbert
  • August 24, 2023
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AeroMD, the exclusive air ambulance service with ICU-equipped planes based in the U.S. Virgin Islands, announced Thursday that it has filed a lawsuit against Cigna for allegedly repeatedly denying patient access to essential air ambulance services and failing to meet overdue payment obligations that now exceed $9 million. The overdue payments have an average delay of more than three years, AeroMD said.

According to the lawsuit, Cigna has systematically denied patients, including U.S. Virgin Islands Government employees, access to AeroMD’s specialized emergency care capabilities for rapid medical transport. This has caused undue harm to patients and impeded their ability to receive timely emergency care. The U.S. Virgin Islands is more than a thousand miles away from the nearest medical center capable of emergency surgical interventions, making AeroMD's services critical for the territory's residents and tourists.

AeroMD alleges that Cigna's actions have created a healthcare disparity in the territory by denying timely access to medical air transportation. The company claims that such delays can have serious and even fatal consequences for patients. AeroMD also contends that Cigna's inadequate payments for services rendered do not cover the basic costs of missions and have forced the air ambulance company to absorb substantial financial losses.

The lawsuit further states that Cigna’s refusal to establish reasonable in-network contract rates has led to arbitrary and grossly inadequate payments, constituting a significant financial burden for AeroMD. The air ambulance company points out that it already provides services to Medicare and Medicaid patients at a financial loss and that Cigna's actions threaten the sustainability of these life-saving services.

Dr. Brendan Anzalone, president and chief medical officer of AeroMD, emphasized the community impact of the lawsuit. "The well-being of our Territory hinges on equitable access to medical care," he said. "It is our collective responsibility to ensure that no family faces the heart-wrenching burden of delayed medevac assistance when a local medevac asset is available."

AeroMD has flown missions for patients covered by other insurance providers, all of whom have reimbursed AeroMD at reasonable rates without issue. According to the lawsuit, Cigna's actions stand as an unfair practice by a large insurance company that undermines a small, local air ambulance service essential to the U.S. Virgin Islands.

The lawsuit seeks to stop Cigna's alleged harmful practices and instigate a change in their policies. AeroMD said it is committed to fighting for the rights of patients in need of timely medical transportation across the region and ensuring that such services are fairly compensated.

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