Jefferson Health is now out-of-network for Cigna
The contract at issue is mainly for people with health insurance through their employers. Cigna's Medicare Advantage plans, such as Bravo and HealthSpring, remain in-network at Jefferson.
Jefferson Health, the Philadelphia region’s largest health system, is out-of-network for people with Cigna insurance through their employers after the two parties failed to agree to a new contract, Jefferson said Saturday in an online announcement.
“We understand that this news may cause concern, and we want to reassure our patients that we remain committed to providing high-quality care. We continue to negotiate in good faith with Cigna to reach a resolution that is fair and sustainable for our patients, providers, and community,” Jefferson’s statement said.
Cigna did not respond to an emailed request for comment.
Jefferson blamed the impasse on economics. It said Cigna’s rates have increased only by roughly 3% since 2020, while wages paid to health-care workers have increased by about 20% over the same time period. “Rising costs for labor, medical supplies, and operations make it unsustainable to continue at these below-market rates,” Jefferson said.
Cigna has 38,000 people in Medicare Advantage plans in the Philadelphia area, according to federal data. People in those plans who rely on Jefferson doctors are not affected by Saturday’s announcement.
It is not unusual for contract talks between insurers and health systems to go down to the wire. Last month, Main Line Health warned patients that it might go out-of-network with Cigna, but reached a last-minute deal on a new multiyear contract.
Sometimes health systems go out-of-network but subsequently reach a new contract. Tower Health hospitals and doctors were out-of-network for Cigna members for four months early last year until a new contract was reached.