Current Cigna-Spartanburg Agreement Ends Dec. 31
In a critical turn of events, the standing agreement between Spartanburg Regional Healthcare System and Cigna is set to conclude on December 31st. This contract involves Spartanburg Regional’s hospitals, its affiliated physicians, and ancillary providers, and its termination could impact the healthcare of many residents who are Cigna members.
After a six-month negotiation period, the two parties are still grappling over the terms of a new deal. Spartanburg Regional voiced its ongoing effort to hold good-faith negotiations with Cigna, expressing hope that a fair agreement will be reached before the year ends.
In a statement from Spartanburg Regional, it was expressed that they hope for Cigna to reaffirm its commitment to the community. They commented, “However, Cigna’s position is in stark contrast to other major national insurers who recognize and agree increases are necessary to meet rising labor and supply costs. We are simply asking Cigna for a fair agreement that helps us continue to care for our ever-growing region.”
Fair Rates or High Costs?
In response, a Cigna spokesperson expressed disappointment at Spartanburg Regional’s potential withdrawal from their network, attributing the challenge to Spartanburg’s demand for a 23% rate increase which they claim could “significantly raise costs for local employers, their employees, and their families.”
Cigna has argued on its website that the requested rate increase over the next three years, coupled with additional contractual modifications, could further escalate costs — a potential burden for its members.
The company also highlighted that Spartanburg Regional’s first-year rate increase request is quadruple the current inflation rate for medical services. It implied that its current rates more than cover the cost of care provided by Spartanburg Regional and emphasized the necessity for a “fair, affordable agreement”.
Impacts After Agreement Termination
Based on the release, all existing Cigna members can still avail services from Spartanburg Regional providers until the end of this year. But, from January 1, 2022, Cigna members might encounter increased out-of-network costs since Spartanburg Regional providers will no longer be part of Cigna’s network.
Even after December 31, however, Cigna members suffering from specific conditions might still be allowed to receive Spartanburg Regional’s services at in-network coverage levels. Members looking to maintain continuity of care eligibility must contact Cigna directly via the number provided on their health insurance cards or by filling out a Transition of Care/ Continuity of Care request form on the Cigna website.
In Case of an Emergency?
Importantly, Spartanburg Regional assures that in emergency situations, Cigna patients can still avail their healthcare facilities and services, irrespective of the healthcare provider’s network status with Cigna. Also, Cigna Medicare contracts will remain in-network.
As of now, direct interaction is required to follow any necessary procedures or to get additional clarifications, especially for Cigna members. Despite the impending termination, there remains optimism on both sides for a new agreement that fits the needs of all parties. We will continue to follow this story as it develops.
