YOUNGSTOWN, Ohio – Mercy Health has begun advising patients that those with Cigna commercial health insurance may find themselves out of network April 1.
Bon Secours Mercy Health, which operates several hospitals in the Mahoning Valley, claims Cigna’s low reimbursements are driving up costs for hospitals.
Following months of negotiations, Mercy Health said Cigma’s reimbursements are substantially less than other payers and have not increased since 2019, while the costs of providing health care continue to rise.
The American Hospital Association and Kaufman Hall reported industrywide cost increases over the past several years, including a 15.2% increase in prescription costs, more than 13% for supplies and a 5% increase in labor.
Mercy Health cited Cigma’s revenues of more than $247 billion, an increase of 27%, as a reason the insurance provider could offer fair reimbursement rates instead of forcing patients to choose between out-of-network rates or finding a new provider.
“As providers of high-quality, compassionate care, we are committed to serving every patient who comes through our doors, and Cigna’s refusal to help ensure in-network access for our patients is incredibly disappointing,” said Dr. Jim Kravec, chief clinical officer of Mercy Health – Lorain and Youngstown.
“Our patients deserve to have access to care when they need it, and reimbursement to cover growing costs to provide care is part of the equation,” Kravec said. “We implore Cigna to fairly reimburse our providers for the care they provide every day. We urge patients to call Cigna on the number on the back of their insurance card and let them know how important it is to keep Mercy Health in their network.”
Mercy Health’s website states the hospital system is attempting to reschedule patients prior to the April 1 deadline whenever possible. Additionally, those with chronic or complex illnesses may be able to request a waiver through Cigna to allow them to continue seeing their current provider at in-network rates, but it is not known if Cigna will deny the request.