Cigna to drop Dignity Health hospitals, surgery centers, medical groups in 2020

Cigna will drop San Francisco-based Dignity Health from its network on Jan. 1, the San Francisco Business Times reports.

What you should know:

1. Dignity's hospitals, surgery centers and medical groups will all be out of network because negotiations failed between Dignity and Cigna.

2. From February 2018 to August 2019, some 16,800 Cigna customers saw a Dignity provider.

3. Cigna and Dignity blame each other for the negotiation 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. The two entities will continue to negotiate in an attempt to reach an agreement.

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