CT insurer lobs accusations at health system over contract talks

Hartford-based Aetna, the health insurance giant owned by CVS Health Corp. is throwing down the gauntlet in its negotiations with UConn Health.

“Every action it ( UConn Health) has taken in our negotiations has demonstrated their myopic focus on the goal of being paid more for the same services,” AETNA said in a statement to the Courant.

“The University of Connecticut Health System (UCONN Health) wants to be one of the most expensive health systems in New England,” the statement said.

Farmington-based UConn Health had late last month warned thousands of patients with Aetna insurance coverage that they may lose their “in-network” status with the health system’s hospital, clinics and doctors if both sides did not reach an agreement on a new contract.

The negotiations between UConn Health — the parent of John Dempsey Hospital, a network of clinics and more than 700 providers —  and Hartford-based Aetna, the health insurance giant owned by CVS Health Corp., remain at odds over reimbursement rates for services.

UConn Health has said 15,000 patients would be affected by the outcome of the contract negotiations with Aetna. The contract expires Nov. 30.

UConn Health pushed back sharply against Aetna, saying “The facts are clear: Aetna reimburses UConn Health at rates among the lowest in Connecticut—despite our exceptional quality, safety, and outcomes.”

A spokesman said, “Their assertion that we seek to be one of the highest-paid health systems is patently false. In reality, given how far below market our current rates are, fair reimbursement from Aetna would simply bring us closer to the median—not anywhere near the top.”

Further the UConn Health spokesperson said, “As Connecticut’s only public academic medical center, our mission is to provide high-quality care, not drive-up costs. Yet Aetna’s practice of paying us the lowest rates in the state benefits their companies at the expense of Connecticut taxpayers. This means public dollars are subsidizing Aetna’s profits while we continue to deliver the highest level of quality and service—at managed care rates of payment lower than some rural hospitals.”

The spokesperson also noted, “Aetna claims to be negotiating in good faith, yet they have not responded to our latest proposal submitted on November 3. This lack of engagement is unacceptable when patients’ access to care is at risk. If no agreement is reached by November 30, Aetna’s refusal to offer fair rates will jeopardize in-network access to UConn Health.”

“Aetna is a Hartford-based company that reported hundreds of millions of dollars in profits in the 3rd quarter of 2025 alone. They have the responsibility to be a fair partner to Connecticut families. Instead, they continue to put profits before patients. We remain committed to negotiating in good faith so patients can continue receiving the care they deserve,” the spokesperson said.

UConn has argued its reimbursement rate is “much lower” than the rates of other hospitals in Connecticut, despite revenue growth in the last decade and rankings that place it in the top tier of hospitals nationwide.

But Aetna said, “If they (UConn) are successful, the high cost of health care will only go up. Aetna has engaged in good faith efforts to find a reasonable agreement with UCONN Health to keep healthcare affordable for our employers and members.

“We continue to fight for the Connecticut businesses and fixed-income retirees who simply can’t afford UCONN Health’s price gouging,” Aetna said.

Aetna also has said, “If we do not reach an agreement by December 1, UConn Health facilities and doctors will no longer be part of the network for most Aetna Commercial members and all Aetna Medicare members.”

Nearly all Aetna commercial clients are self-insured, so 100% of the cost of care is paid directly by the employers and their employees.

If negotiations do not resume before Dec. 1, UConn Health facilities and doctors will no longer be part of the network for most Aetna Commercial members and all Medicare members.

State of Connecticut retirees may have access to UCONN Health through Extended Service Area, UConn Health has stated on its website.

Earlier this year, UConn Health system took out billboards along I-84 and I-91 pressuring another health insurer, Farmington-based ConnectiCare, to increase its reimbursement rates for medical services. ConnectiCare was acquired by California-based Molina Healthcare in February.

UConn Health subsequently negotiated a new agreement with ConnectiCare after the current contract had expired.

Reporting by Kenneth Gosselin is included.