University of California Health and Cigna Healthcare have so far been unable to reach a new network contract agreement ahead of a July 1 deadline.
The potential split would affect UC Health hospitals, facilities and providers across the state, including at Sacramento-based UC Davis Health, UCSF Health, UCLA Health and UC Irvine Health and UC San Diego Health. All Cigna members with Commercial Open Access Plus (OAP), PPO, HMO, and LocalPlus (LP) plans would lose in-network access, though UC employees and retirees are not affected. Some individual facilities within their respective systems are also exempt.
“UC is asking for single-digit cost increases to cover the costs of inflation, increased costs for medical supplies, and cost-of-living increases for its employees,” UC Davis Health’s website said. “While UC’s requests for reasonable increases have been generally dismissed by Cigna, the company has been significantly increasing health plan premium costs for its members, and it expects to see increased profits in 2026 and stating it expects more in the future, despite covering fewer patients.”
“UC Health is threatening to leave our network if we do not agree to its proposed terms, which include a nearly 35% increase in what Cigna Healthcare customers would pay over four years,” a spokesperson for the insurer told Becker’s. “We value our relationship with UC Health and recognize the importance of maintaining access for our customers, but price increases at that level are unsustainable for the employers and families we serve throughout the state of California. We remain actively engaged in discussions and are committed to reaching a solution that helps prevent significant cost increases while supporting patient access.”
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