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Lawsuit Filed Against Bloomington Surgery Center
Updated July 22, 2015 3:47 PM
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(BLOOMINGTON) - A major insurance company is suing 11 surgery centers claiming they have been overbilled more than $6 million by the centers.

The suit has been filed in Federal District Court. No court date has been set to hear the allegations.

According to the lawsuit, Cigna Health and Life Insurance Company claims Indiana Specialty Surgery Center LLC, located on Arch Haven Avenue, conspired with SurgCenter Development to Cigna plan members in as patients by offering to charge the plan members little or nothing for out-of-network medical services while charging higher rates to the patients' insurance plans overbilling the insurance company $590,000.

According to the lawsuit e surgery centers calculated patient costs by applying a 150 percent multiplier to Medicare rates for services performed by the center, then discounting the rates by the amount patients would have paid had they seen an in-network provider.

The centers then "applied an 800 percent multiplier -- resulting in charges to Cigna that were as much as tens of thousands of dollars higher than the rates they used to calculate their patients' responsibility,"

SurgCenter Development, a Nevada company, disputes the insurance company's claims and plans to file a counterclaim and a motion to dismiss the lawsuit.

Other surgery centers included in the lawsuit are:

  • Advanced Regional Surgery Center LLC
  • Carmel Specialty Surgery Center LLC
  • Columbus Specialty Surgery Center LLC
  • Metro Specialty Surgery Center LLC
  • Midwest Specialty Surgery Center LLC
  • Munster Specialty Surgery Center LLC
  • Northwest Regional Surgery Center LLC
  • Riverview Surgery Center LLC
  • South Bend Specialty Surgery Center LLC
  • Sycamore Springs Surgery Center LLC.

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