Cigna dispute with Atlantic Health System in New Jersey

From CIGNA.  Note that both companies continue to negotiate and that this is a normal and required notice during these negotiations::

I am writing to let you know about a potential change to the Cigna network of participating hospitals in New Jersey that may affect some of your employees.

We have been negotiating with Atlantic Health System for a contract renewal but have not been able to reach an agreement at this time.  If we are unable to reach an agreement, the effective termination date will be February 1, 2019. At this time, we are mailing required notices to impacted customers to share an update about this potential change.

To comply with New Jersey law, Cigna and Atlantic Health System must continue to cover all services and abide by all terms of the contract for a four-month period (the “cooling off” period) following the termination of the contract.   During this period, members with HMO/HMO POS Cigna products may continue to access inpatient and outpatient services at Atlantic Health System as in-network covered services subject to our usual authorization and referral processes. For members in these plans, the hospital will be out of network effective June 1, 2019.

The New Jersey statutory “cooling off period” provisions described above do not apply to hospital services for members who are not covered HMO/HMO POS products. For members outside of these plans, the hospital will be out of network effective February 1, 2019.

Atlantic Health System has been a valued part of our health care professional network for many years and Cigna prefers that they remain in the network.  We are committed to continuing discussions with them and are hopeful that we will come to a mutually acceptable agreement. We would welcome Atlantic facilities and physicians to remain part of our network, but only on fair terms that ensure local access to care at an affordable cost now and in the future. Atlantic Health is already generating a healthy profit margin on Cigna’s business, well in excess of their costs. According to our analysis, if we were to agree to what Atlantic Health System is requesting, our clients and customers would be charged more than what the competitive rate for Atlantic’s services are in the market. If you’d like to reach out to Atlantic Health Systems’ leadership to urge them to work with us to reach a fair deal, please reach out to Kevin Lenahan, SVP Chief Financial & Administration Officer at (973) 660-3565.

Cigna has a broad network in New Jersey and our customers will continue to have access to hospital services through the remaining Cigna network of hospitals in the area.  A full listing of hospitals is available in our online directory located at