Jefferson Health and the health insurance company failed to negotiate a new contract. Their relationship with Cigna ended on Saturday.
Dino Ciliberti, Patch Staff
|Updated Tue, Mar 18, 2025 at 9:40 am ET
PHILADELPHIA REGION —Jefferson Health has failed to reach an agreement with Cigna, making the healthcare system out-of-network for insurance carriers after 20 years of partnership.
"Despite our best efforts to reach a fair agreement, Jefferson Health and Cigna have been unable to finalize a new contract," Jefferson Health said in a statement.
As a result, as of Saturday, Jefferson Health is now considered out-of-network for Cigna commercial members.
Jefferson Health operates numerous facilities in the Philadelphia region, including Abington Hospital and Jefferson Bucks Hospital in Falls Township. It operates more than two dozen hospitals, several medical practices in the area, urgent care facilities, rehab centers, outpatient care facilities and more.
A full list of facilities can be located here.
Find out what's happening in Abingtonfor free with the latest updates from Patch.
"We understand that this news may cause concern, and we want to reassure our patients that we remain committed to providing high-quality care," Jefferson Health said. "We continue to negotiate in good faith with Cigna to reach a resolution that is fair and sustainable for our patients, providers, and community."
Jefferson Health has been an in-network provider for Cigna members for 20 years.
Both sides are pointing fingers as to who is to blame for the failure to come to an agreement.
Jefferson Health said the current contract with Cigna did not reflect the true cost of delivering care. According to the healthcare provider, Cigna’s reimbursement rates have increased by only 3 percent since 2020, while the Hospital Wage Index has risen 20 percent and CPI-U has increased 21 percent.
However, in a statement, Cigna said that Jefferson Health was to blame for the contract breakdown.
"Unfortunately, Jefferson Health chose to leave our network due to their unreasonable rate hike demands that would raise health care costs for the people we serve," a Cigna spokesperson said. "We will continue to negotiate with Jefferson Health to reach a fair agreement that will keep health care affordable for patients..”
Emergency care remains in-network for all Cigna members, regardless of contract status. Some patients may qualify for Transition of Care programs to maintain in-network benefits. Additionally, many Cigna plans include out-of-network benefits that may allow continued access to Jefferson providers.
Jefferson Health said Cigna members should contact Cigna directly to understand their coverage options and advocate for continued access to Jefferson Health providers.
"Our priority remains delivering the highest quality care while securing fair agreements that support our mission," Jefferson Health said. "We appreciate your patience and support as we work toward a resolution."