West Reading, Pa.-based Tower Health will be out of network for all Cigna Healthcare members starting Jan. 1 following a disagreement over reimbursement rates, the Reading Eagle reported Nov. 24.
The split applies to all Tower Health facilities and physicians for Cigna commercial, Medicare Advantage and behavioral health plans. Cigna said it is continuing to negotiate with Tower Health, but the health system has already begun to notify patients about the impending contract break.
"Tower Health, like other health systems, has been contending with unprecedented cost increases for personnel, supplies, equipment and medication necessary to continue providing high quality care," a health system spokesperson told the Eagle. "Cigna has been unwilling to compensate Tower Health at reasonable payment rates."
"We are disappointed that Tower Health is choosing to leave our network Jan. 1 unless we agree to their demands for significant rate increases that will make healthcare much more expensive for the people we serve," a Cigna spokesperson told the Eagle. "It's important to understand who pays the bills: any increase in cost of care is paid directly by local employers, their employees and families."