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Cigna drops Dignity Health after contract negotiations fail — 4 insights

Cigna dropped San Francisco-based Dignity Health from its network after the organizations failed to come to an agreement over payment rates before a Jan. 1 deadline, the VC Star reports.

What you should know:

1. Cigna covered more than 16,000 Dignity Health patients across California. Dignity had been in network with Cigna since the 1990s.

2. Some Cigna customers will remain in the network for a short time. Cigna's PPO and HMO customers will lose access to Dignity Health providers on Feb. 1 and April 1, respectively.

3. Cigna and Dignity blamed each other for the breakdown. Cigna argued Dignity is asking for too high of a reimbursement rate, while Dignity argued Cigna is trying to cut its reimbursement rate too much.

4. A Cigna official said talks with Dignity have stalled and are not continuing.

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