Cigna, UC Health extend contract as coverage negotiations continue
The University of California Health system and Cigna, facing a July 1 deadline to reach a new contract covering a large group of Sacramento-area patients, have agreed to an extension to allow more time for negotiations.
UC Davis Health previously said the system was pushing for reasonable payment hikes to cover hospitals’ rising costs. Cigna, meanwhile, called the system’s proposals “unsustainable” and “well above market norms.”
The insurer and the hospital system have agreed to a 45-day contract extension to continue negotiations, said Steve Telliano, spokesperson for UC Davis Health, in an email Tuesday. Patients’ Cigna coverage will continue during that time.
The health system said, in a notice to patients Tuesday, that UC Davis negotiators are “optimistic” they can reach a new multiyear agreement by the time the extension ends in mid-August. Patients with Cigna coverage should receive more details this week.
The contract extension covers about 100 patients in Cigna HMO plans in the Sacramento area, and potentially a few thousand patients covered by PPO plans, but the hospital system did not provide exact numbers.
Cigna representatives did not respond to a request for comment Tuesday, but the insurer said in a notice to patients Monday that the groups were working on an extension to allow time “to solidify a longer-term deal.”
More information for patients — including detail on the health plans and providers affected by the negotiations — is available on Cigna’s and UC Davis Health’s websites.
