Chesapeake Regional, Cigna reach deal in rate reimbursement fight

Chesapeake Regional Medical Center and health insurer Cigna reached an agreement that will allow Cigna members who get their insurance through their employer to continue to pay lower rates for services through the hospital system. 

The new contract, which was announced Friday, will be effective through July 31, 2025. Under its terms, Chesapeake Regional will remain in the Cigna coverage network.

Contract dispute threatens relationship between Cigna and Chesapeake hospital

In a statement, Chesapeake Regional Healthcare President and CEO Reese Jackson said he was “very satisfied that our efforts have resulted in mutually beneficial terms.” Cigna Healthcare Vice President of Contracting and Network Management Elizabeth Malley-Lowe said the insurer was “pleased to reach agreement with Chesapeake Regional to continue providing quality, affordable in-network care to our customers.” 

Disagreements this spring between the two organizations over the rates at which Cigna would reimburse Chesapeake Regional for services nearly led to the termination of their existing contract. 

Had that occurred, it could have meant thousands of Cigna-insured people in Hampton Roads would no longer have gotten lower in-network rates for health services provided through Chesapeake Regional. Instead, they would have had to pay higher rates or find other medical providers still in Cigna’s network. 

Tricia Hardy, a spokeswoman for the hospital system, said the agreement had been reached without any interruptions in service for patients.

Even as the hospital system and insurer reached a deal Friday, a separate dispute between Anthem Blue Cross Blue Shield and Bon Secours Mercy Health has left 11,000 Virginians with Anthem-managed Medicare Advantage plans out of network for Bon Secours, which operates numerous hospitals in the Richmond and Hampton Roads areas. 

If an agreement is not reached by Oct. 1, an additional 39,000 Virginians who have Medicaid coverage through an Anthem-managed plan will also fall out of Bon Secours’ network.