In Knoxville, Tennessee, a significant dispute between East Tennessee Children’s Hospital (ETCH) and Cigna is creating uncertainty for thousands of families who rely on the hospital for pediatric care. Starting March 1, patients with Cigna insurance could find themselves out of network, affecting approximately 27,000 families.
The conflict began when ETCH received a notification from Cigna in May, indicating the insurer’s intention to terminate their contract. ETCH leadership expressed disappointment over the lack of substantial discussions since that notice, stating they first learned of Cigna’s plans on May 27. Unlike Cigna’s claims that the hospital’s rates are higher than competitors, ETCH maintains that their costs are competitive within the context of other children’s hospitals across the country.
Families, such as the Smiths, who bring their 2-year-old daughter to ETCH for ongoing treatment, have voiced their anxieties over these developments. Rebecca Smith explained that they depend on the hospital for specialized care that is not available locally, highlighting the serious implications of potentially losing access to their healthcare providers. “We pay thousands of dollars a year for insurance, and you tell us that we can’t take our children to the local ER?” she questioned, reflecting the frustration and uncertainty many families are experiencing.
ETER officials indicated they have made continuous efforts to negotiate with Cigna but have yet to receive a detailed counterproposal. In public statements, they encouraged community members to contact Cigna and emphasize the importance of maintaining their partnership. “Cigna notified us, not the other way around. We are not threatening or demanding anything from them,” a hospital spokesperson stated, refuting Cigna’s claims.
Cigna, for its part, reaffirmed that it seeks a resolution that makes healthcare both accessible and affordable. In its communication, the insurance company highlighted that rising costs could adversely affect local businesses and their employees if an agreement isn’t reached.
As negotiations remain at a standstill, the prospect of facing care disruptions weighs heavily on families dependent on ETCH. The hospital is committed to advocating for solutions that best serve the community’s needs, while families like the Smiths continue to seek clarity and security in their children’s healthcare options.
This contract dispute brings to light the challenges of navigating healthcare coverage, especially for families needing specialized care. While there is no immediate resolution in sight, the hope remains that both parties can come together to find a solution that supports the health needs of the community.