Cigna, Tenet contract in Memphis nears end
Customers are weeks away from losing in-network option for health insurance
Cigna commercial health insurance customers are weeks away from losing their in-network option with Tenet Healthcare facilities in Memphis, and the companies are letting those affected know who they think is in the wrong.
Health insurance company Cigna’s Memphis contract with Tenet will expire at the end of the year. Both are saying the other won’t agree to fair terms. The contract covers Tenet hospitals, physician clinics, freestanding surgery centers, imaging centers and urgent care centers.
There are 252 Tenet hospitals, facilities and affiliated doctors in Tennessee, according to Cigna. Tenet has a notable presence in
the Memphis area, including Saint Francis Hospital – Memphis, Saint Francis Hospital – Bartlett and many outpatient facilities.
Tenet Memphis market CEO: Contract would slash rates
Audrey Gregory, CEO of Tenet Healthcare’s Memphis market, said in a letter to the editor published Dec. 2 that Tenet has tried to reach a fair agreement with Cigna since February.
Cigna has not proposed a reasonable agreement and the contract it wants “would slash payment rates by millions,” Gregory said.
She added Tenet invests diligently in its hospital system in ways like technological improvements and recruiting efforts.
“Patients with Cigna commercial health plans who utilize these facilities and seek care from these doctors would have to pay more out of their own pocket to access the care they need and trust,” Gregory said.
Cigna sending letters, has website for customers affected
Cigna, meanwhile, has sent letters to affected customers saying Tenet is asking for unreasonable rates that drive up health care costs for people and their employers. The letters say Tenet rates cost up to 75 percent above the average rates of competing, same-market hospitals.
“In some markets, Tenet charges 350 percent more than what Medicare pays,” the letter says.
Cigna also has a website called saveourhealthcare.com that’s dedicated to its spat with Tenet. A page on the website has a form where customers can send a letter to Tenet about the issue.
Cigna has said Tenet won’t work with its Tennessee operations until they decide what a contract should look like elsewhere. Besides Tennessee, Cigna says customers in Alabama, Arizona, California, Florida, South Carolina and Texas are more at risk of losing their innetwork providers due to the dispute.
The potential contract expiration will not affect Cigna-HealthSpring Medicare Advantage customers in Memphis. About 2 percent of Cigna customers in Memphis have been cared for at a Tenet hospital within the past 18 months, according to Cigna.
A full list of facilities Tenet Healthcare runs in Memphis is available on its website.
Max Garland covers FedEx, logistics and health care for The Commercial Appeal. Reach him at max.garland@commercialappeal.com or 901-529-2651 and on Twitter @MaxGarlandTypes.