CHATTANOOGA, Tenn. — We are hearing from another major hospital in the Chattanooga area as they continue contract negotiations with a large health insurance provider.
Tuesday we’re taking a look at how these situations can happen, leaving patients without the coverage they rely on.
Common Spirit Memorial Hospital, once called CHI Memorial, says they are in contract negotiations with Cigna Healthcare.
The deadline for a renewal is fast approaching.
Common Spirit held similar negotiations with BlueCross BlueShield almost 2 years ago.
In early December of last year, Bradley Medical Center and United Healthcare failed to come to an agreement.
Knox Insurance Advisor Isaiah Knox tells us…
“Costs are rising faster than wages. Hospitals are under pressure. Insurance networks are shrinking and patients are being asked to pay more out of pocket than ever before.”
Common Spirit Memorial joins several other hospitals in our viewing area to potentially cut ties with an insurance provider as their contract with Cigna healthcare is set to expire.
Patient attempting to walk. Getty Images.
Bradley Medical Center held similar negotiations with United healthcare last year, ending with both sides failing to come to an agreement.
The reason? Knox says it comes down to three things: price, volume, and risk.
“Hospitals want higher reimbursement for the services. Insurance companies want lower costs and premiums, so that they don’t skyrocket.”
Common Spirit Memorial says they’re actively engaged in good faith negotiations and goal is to provide high quality healthcare for residents.
“We’re actively engaged in good faith negotiations with Cigna to protect our patients’ access to Memorial Hospitals, physicians, and advanced practice providers that deliver high-quality care.”
But Cigna healthcare argues the rate increase Common Spirit is proposing would hurt customers. They say in a statement…
“Memorial is already one of the most expensive hospitals in the greater Chattanooga area, and now they are demanding rate increases that would force our customers and their families to pay more.”
Aaron Dixon, with Insurance Advisers of Tennessee, says ACA premiums have shielded people in the past.
Woman in hospital bed. Getty Images.
But with their expiration date looming, that may no longer be the case.
“It’s displacing a lot of people from their health coverage and causing quite an increase to their premiums.”
Dixson says it’s up to lawmakers to keep ACA premiums lower.
“We’ll just have to wait and see. I know the Senate is also working on their own version of a bill to extend these credits, so hopefully, with some bipartisan agreement, we can make that happen.”
According to the hospital, the current contract expires at the end of January.
The House passed a 3-year-extension of ACA subsidies. It still has to pass the Senate and get approval from the President.