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Mercy Health warns of contract issues with Cigna

Staff report

Mercy Health is alerting Cigna Healthcare commercial insurance customers they may no longer be accepted April 1 for in-network services at its Ohio facilities.

The health system said St. Elizabeth Boardman Hospital, St. Elizabeth Youngstown Hospital and St. Joseph Warren Hospital would be affected locally. Statewide, approximately 30,000 Cigna Healthcare customers could be involved.

Cigna Healthcare sells employer-sponsored health insurance plans among its services.

In a news release issued Wednesday, Mercy Health said months of negotiations were unable “to secure appropriate reimbursements that reflect the current health care environment, help create long-term sustainability and avoid any care disruptions for Mercy Health patients.”

The health system cited Cigna Healthcare’s failure to increase rate payments over six years and an alleged high rate of claim denials among its concerns.

“Bon Secours Mercy Health notified us of their intention to leave unless we agree to their significant rate increases across multiple markets,” a Cigna Healthcare spokesperson responded in an email. “Unfortunately, these increases would make healthcare unaffordable for our customers and their families.

“We hope that Bon Secours Mercy Health will do what is right for the people we both serve in this community and continue working with us to reach an affordable agreement.”

Unless a new contract is reached, Mercy Health said its hospitals, physicians, urgent cares, ambulatory surgery centers and other care sites in Ohio will no longer be in the Cigna Healthcare network. Regardless, Mercy Health said it will provide access to care in the event of an emergency.

“We are fully committed to ensuring there is no interruption in care for our Ohio patients, and we’re actively working with Cigna to maintain access to essential services,” said Dr. James Kravec, chief clinical officer, Mercy Health-Youngstown.

Mercy Health said it remains in-network for all other major commercial insurance plans in Ohio. The health system is offering additional information at www.mercy.com/cigna-updates.

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