Cigna and Community Medical Centers in contract dispute

FRESNO, Calif. (KFSN) -- Cigna Healthcare members have been placed on notice about a contract dispute with Community Medical Centers.

In a letter to policyholders dated June 22nd, the health insurance company said it's currently in contract negotiations with Community.

If the two sides cannot reach an agreement by July 15, the hospital system will leave Cigna's commercial network.

That means any doctor visits or procedures at Community Regional Medical Center, Clovis Community or Fresno Heart and Surgical Hospital could be considered out of network, and most Cigna customers would likely have to pay 100 percent of the cost at those three facilities after July 15.

Both sides have agreed to continue negotiating.

Certain Cigna policyholders could apply for continuity of care, which allows a patient to continue care at the in-network benefit level at Community Medical Centers for a period of time.

Community recently announced that after a four-month-long dispute, it reached a new multi-year agreement with Blue Shield that retroactively restores in-network access to February 1.

In letters to patients, Cigna claims the hospital network is "demanding higher-than-average prices" that would raise health care costs.

Community says higher commercial reimbursement rates are necessary to offset rising labor, pharmaceutical and operating costs.