A letter to our community

Preparing for our Cigna contract to end on July 1 

June 27, 2025 

By Merrin Permut , Vice President & Chief Population Health Officer  

As we near the end of June, I want to provide you with the latest update on our negotiations with Cigna. While we’ve remained hopeful for a resolution, it now appears increasingly likely that most Legacy Health hospitals and providers will be out-of-network for Cigna commercial plans beginning July 1 (excluding Silverton hospitals and clinics). 

When we began setting the rate expectations with Cigna over one year ago, it was to ensure we had time to negotiate fair and reasonable rates over the following months without impacting our patients. Our ask was, and remains, fair and equitable reimbursement rates to partially offset increases in the cost of healthcare labor and supply expenses. Now, with only four days left before we would be forced to leave the Cigna network, we are not where we need to be to sign a new agreement. 

 Our approach to this negotiation, and with all insurance companies, is to ensure we are paid equitably when compared to other health care systems in the market and that our reimbursement can keep up with our expenses. This allows us to maintain our vital health care offerings and deliver new services for our communities. As we entered renewal discussions with Cigna, we already knew that our reimbursement rates were significantly below other health systems in the market (based on publicly available data). More importantly, we needed an increase to address the rising costs that we have experienced over the past few years.  

We believe in working collaboratively with insurance companies to find creative solutions, and we always remain willing to find common ground.  As we have shared previously, we are not alone in dealing with rising healthcare costs and negative margins. Unfortunately, we are also not alone as other hospitals and health systems have struggled to come to agreement with Cigna until the last minute.   

Our reality is that we are a local community-based health system committed to providing the highest level of care for our patients. We have seen rising costs over the past several years, and we rely on our partners, like Cigna, to carry their fair share of those increases. Cigna has a strong financial foundation, with healthy profit margins in 2024 and reported $1.3 billion in profits for the first quarter of 2025.  They are more than capable of coming to agreement without passing increases along to their customers and members.

Our expenses at Legacy have risen more than 35% since 2021, resulting in a $94.6 million loss at year-end. We are asking for fair and equitable reimbursement in recognition of the vital services Legacy provides.  

We will continue to negotiate in the days ahead and are hopeful that an agreement is still possible. However, given where things stand, we must prepare for the real possibility that most Legacy hospitals and providers will be out-of-network for Cigna commercial members beginning Tuesday, July 1.  

To support you during this time, we have created resources and tools to help guide your decision making at LegacyHealth.org/CignaContract.   

The best thing you can do to understand your insurance coverage and available options for providers, hospitals and clinics after June 30 is to call Cigna.   

In the event of a contract termination, Legacy does not have the authority to make decisions about your insurance coverage. Cigna is responsible for deciding your insurance coverage and determining if you qualify for continuity of care and if you have an out-of-network benefit that would cover care at Legacy. To learn more, please call Cigna using the phone number on the back of your member ID card.  You can also find more information and access Cigna’s continuity of care application form here.  
   
We have heard from many of you about the stress, frustration and fear you are experiencing during an already challenging time. Our providers share your concern and are advocating for your continued access to the care you deserve. Please know Legacy will continue to keep your needs at the forefront of our discussions, and we hope Cigna will do the same.