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Health insurance giant Cigna is accused of using an algorithm to reject hundreds of thousands of patients’ claims.

A federal lawsuit alleges that health insurance giant Cigna used a computer algorithm to automatically reject hundreds of thousands of patient claims without examining them individually as required by California law.

A lawsuit filed in the U.S. District Court in Sacramento accuses health insurance provider Cigna of using an algorithm, known as PxDx, to automatically review and deny hundreds of thousands of patient claims without individual evaluation by doctors. The lawsuit argues that these actions violate California state law, which requires insurers to conduct a thorough and fair investigation of each claim. By relying on the algorithm, Cigna can save money by denying claims and reduce labor costs by minimizing the time doctors spend reviewing each case.

Cigna is using an algorithm to review — and often reject — hundreds of thousands of patient health insurance claims, a new lawsuit claims, with doctors rubber-stamping those denials without individually reviewing each case.

According to a federal lawsuit filed in Sacramento, California, health insurance provider Cigna has been accused of violating California law by using a computer algorithm to automatically reject hundreds of thousands of patient claims without proper individual examination.

Cigna Healthcare is facing a federal class action lawsuit for using algorithms to deny insurance claims in large batches, allegedly violating California law.

Cigna’s doctors reject medical claims without opening patient files, the suit alleges.