Cigna health plan members may no longer have in-network access to Dallas-based Tenet Healthcare's Memphis, Tenn.-based facilities if the two parties can't agree on a contract renewal by Dec. 31, according to The Memphis Commercial Appeal.
Here are six things to know:
1. The current contract, which applies to Cigna's commercial customers in Memphis, is set to expire Dec. 31. The contract does not include Cigna HealthSpring Medicare Advantage customers, which means they will be spared if a contract agreement is not reached.
2. If the two parties are unable to reach an agreement, commercially insured individuals would not have in-network access to several Tenet hospitals, physician clinics, freestanding surgery centers, imaging centers and urgent care centers.
3. The contract negotiations between Cigna and Tenet have hit a snag. Cigna says Tenet is insisting on entering into a national contract instead of a more individualized state-based contract.
"Despite repeated efforts to find common ground with Tenet Healthcare, Cigna is unable to reach an agreement with them on what healthcare should cost at their facilities," the insurer told The Memphis Commercial Appeal.
4. Tenet, on the other hand, argues that its Memphis area facilities are set to be out of network because of "Cigna's demands for payment reductions."
5. About 2 percent of Cigna's Memphis customers used a Tenet facility in the last 18 months, according to the report.
6. "Cigna will continue to fight to make it easy for our customers to access affordable, personalized care from local providers," Cigna said. "The company has a broad system of in-network providers for customers if an agreement with Tenet is not reached."