Update on Cigna and CommonSpirit Health Negotiations

Update: Cigna Healthcare has announced that CommonSpirit Health, previously known as CHI Memorial, officially left its network on February 1 after contract talks broke down.

Cigna described the situation as “unfortunate,” noting that the hospital, already one of the costliest in the area, sought substantial price hikes that would lead to higher healthcare costs. Cigna made an effort to keep the current contract in place while discussions were ongoing, but this was not accepted.

The company pointed out that many of its employer clients are self-funded, meaning that the higher expenses from the hospital directly impact local businesses and their employees.

For members getting care at Memorial Hospital, Cigna stated it would assist patients in continuing their care or finding another provider within the network. Patients are advised to contact customer service using the number on their insurance cards to explore their options.

Cigna has emphasized that customer service representatives are available 24/7 to help guide patients to in-network facilities. They expressed hopes for Memorial Hospital to return to their network to focus on affordable healthcare for the Chattanooga community.

Cigna’s Full Statement

“We are disappointed that CommonSpirit Memorial Hospital chose to leave our network on February 1st. Requested price increases from Memorial Hospital are not feasible, and we proposed to maintain the current contract while negotiations took place. Most of our employer clients pay directly for healthcare costs, leading to potential burdens for local businesses and their employees.”

“Cigna Healthcare customers receiving care at Memorial Hospital can reach out to us to facilitate continued care or assist with transferring to other in-network providers. Call the number on your member ID card for support.”

“We understand the disruptions these changes may cause, and our advocates are always available to help connect patients with quality care in their vicinity. Our hope is for Memorial Hospital to rejoin our network, prioritizing affordable healthcare for families in Chattanooga.”

Background on Network Changes

Previous story: As of February 1, 2026, Cigna has removed CommonSpirit Health from its commercial insurance network in Tennessee and Georgia.

CommonSpirit officials are still negotiating with Cigna to restore in-network access for patients promptly.

Hospital leadership recognizes that these changes can induce anxiety for patients, urging affected individuals to evaluate their insurance options and check the latest updates on CommonSpirit’s website.

Despite the network changes, CommonSpirit Health remains dedicated to delivering high-quality, compassionate care, aiming to enhance the health of its service communities.

“Cigna removed CommonSpirit Health from its commercial network on February 1, 2026. We are engaged in negotiations with Cigna to reach a solution that will restore in-network access for our patients as soon as possible. Changes in insurance coverage can be worrisome for our patients, prompting us to encourage them to visit our website for comprehensive information.”

“As always, we are devoted to providing top-notch, compassionate care to the communities we serve. “

Concerns from the Community

Previous story: Many individuals in the Tennessee Valley will face significant healthcare decisions in the weeks ahead. CommonSpirit Memorial might end its longstanding partnership with Cigna Healthcare soon.

Individuals using Cigna Healthcare who are patients at CommonSpirit Memorial may want to stay alert to correspondence regarding these changes.

For weeks now, notifications have been sent to patients about failed contract negotiations.

Officials from CommonSpirit Memorial issued a statement acknowledging their active discussions with Cigna to protect patient access to their facility and the quality medical care provided there.

Their goal is to ensure that community healthcare needs are met now and later, emphasizing a patient-centered approach. They aim to renew the Cigna contracts by February 1, 2026, to keep in-network access intact for Cigna plan enrollees.

Cigna Healthcare remarked that the rising rates at Memorial are a concern, as it could put a financial strain on customers and their families. They remain committed to securing a fair agreement and suggested extending the current contract since talks were ongoing.

However, Memorial did not accept this proposed extension. Cigna reiterated the importance of prioritizing affordability and quality care for the families in Chattanooga.

According to a letter from Cigna, if CHI Memorial exits its network, patients will unfortunately face higher costs for previously lower in-network rates. They might need to pay out-of-pocket or deal with out-of-network expenses.

Pressure is building as patients express concerns as the January deadline looms. For instance, Katie Houston, a Cigna beneficiary, shared her worries about losing access to her long-time doctors. Given her family’s health needs, affordable, accessible medical care is critical for them.

All she can hope for is that a compromise can be reached soon, as CommonSpirit Memorial warns patients will be updated if an agreement cannot be found.