Louisville's Norton Healthcare to drop Cigna if contract not reached

Norton Healthcare will no longer consider Cigna Healthcare as one of its accepted insurance providers if a new deal between the two companies isn't reached soon, a letter sent to patients said.

The heath care service, which owns several facilities in Louisville and the surrounding region, said its contract with Cigna will end on May 15. The letter said the company is nonprofit and it "must receive an adequate reimbursement rate from insurance companies in order to continue providing the care our community deserves."

Still, the company hopes to reach an agreement with Cigna, and officials will notify patients if they do. Renee Murphy, senior vice president and chief marketing and communications officer for Norton Healthcare, said company leaders have been trying to reach an agreement with Cigna since last year.

Cigna Corp. | Health insurance, related services | 2019 employees: 4,889 | 2018 employees: 3,100 | Ownership: Public | Headquarters: Bloomfield, Connecticut | www.cigna.com
Cigna Corp. | Health insurance, related services | 2019 employees: 4,889 | 2018 employees: 3,100 | Ownership: Public | Headquarters: Bloomfield, Connecticut | www.cigna.com

"The costs connected to providing quality care continue to climb, just like costs have increased across various industries. Cigna has been a good partner with us over the years and we hope to continue that working relationship," Murphy told The Courier Journal.

The letter said patients will still be able to get services in Norton's emergency departments after the contract expires, and people whose insurance lets them can complete any ongoing treatment. But after the deadline, many will have to pay out-of-network costs if they want to continue using Norton facilities.

A Cigna spokesperson said the company has been trying to negotiate with Norton Healthcare, but the rates they are asking are too high. The spokesperson said that the cost of health care is paid by the employers and their employees.

"The price increases Norton Healthcare is demanding will directly impact local companies, their employees and families through higher out-of-pocket costs and increased payroll deductions," the spokesperson said.

This will affect many families whose doctors are within the Norton Healthcare system or who have ongoing treatments at their facilities.

One example is Michael Kuhr and his wife, whose 5-year-old son has been hospitalized for RSV three times and has had two heart catheters and a heart surgery, all at Norton. And his pulmonologist is also within the Norton Healthcare system.

And although the Kuhrs' son is the priority, they are also worried about their own treatments and doctors, which are both within the Norton Healthcare system. They both work for nonprofit companies and say it’s unimaginable to pay for medical care at the full rate.

Patients can apply to Norton Healthcare's financial assistance program, which helps people in households with incomes up to 350% of the federal poverty guidelines. Applications can be completed through NortonHealthcare.com/FinancialAssistance or by calling 502-479-6300.

Cigna Healthcare is a Bloomfield, Connecticut-based insurance company ran by The Cigna Group that offers dental plans, Medicare plans, Medical plans, supplemental health and insurance through employers. Cigna has a service line that functions daily and can help its customers find in-network doctors and hospitals.

More: What news is most important to you? Tell us in this Courier Journal reader survey

More: Rep. Thomas Massie reintroduces bill to let governments allow guns in school zones

Reach Ana Rocío Álvarez Bríñez at abrinez@gannett.com; follow her on Twitter at @SoyAnaAlvarez

This article originally appeared on Louisville Courier Journal: Norton Healthcare to drop Cigna in May if new deal isn't reached