Mercy Health, Cigna agree to 24 hour contract extension

Mercy Health and Cigna have agreed to a 24-hour contract extension, keeping Mercy Health providers and facilities in-network for Cigna health insurance patients until 11:59 p.m. on Tuesday, April 1, 2025.
More information about the extension was posted on Mercy Health's website:
Cigna Contract Negotiations At a Glance
Both Mercy Health and Cigna have agreed to a 24-hour contract extension until tonight, April 1 at 11:59 p.m. This means Mercy Health providers and facilities are considered in network for patients with Cigna commercial (employer-sponsored) health insurance until 11:59 p.m. on Tuesday, April 1, 2025.
We are continuously engaged in active discussions with Cigna, in hopes of reaching a long-term agreement. Our primary goal is to prevent interruption in care for our patients.
We are still in-network with Cigna commercial patients. Patients still have in-network access to their care teams.
We will continue to keep you informed as to any developments as soon as they happen. Please continue to check our website for the most up-to-date information.
We remain focused on continuing to invest in the health and well-being of the communities we serve. We look forward to serving you for years to come.
The news comes after a previous deadline passed without a resolution to ongoing contract negotiations. Earlier, both companies had warned patients that if an agreement was not reached by April 1, Cigna customers would be considered out-of-network at Mercy Health facilities.
Last week, Mercy Health issued a statement indicating they were working with patients to reschedule April appointments and procedures to avoid disruptions in care. The health system also noted that patients with chronic or complex illnesses may qualify for continuity of care, allowing them to continue seeing their providers at in-network rates, subject to Cigna’s approval.
Mercy Health contends that Cigna’s reimbursement rates have not kept pace with rising health care costs. “Cigna’s reimbursements—already substantially less than those of other payers—have not increased in key markets since 2019 and are overwhelmingly inadequate to account for the rising cost of providing health care to the communities served by Mercy Health,” the health system said in a statement.
Mercy Health cited data from the American Hospital Association and Kaufman Hall, which reported industry-wide cost increases, including a 15.2% rise in prescription drug costs, a more than 13% increase in supply costs and a more than 5% increase in labor costs.
“While costs continued to rise, hospital prices increased by only 2.6%, yet health insurance premiums rose by 6.7%, according to the AHA. Denials and delays from insurance providers like Cigna are increasingly prevalent, leading to significant administrative burdens for health care providers and significant delays in patient care,” Mercy Health said.