Contract dispute threatens relationship between Cigna and Chesapeake hospital

Insurance giant Cigna is poised to end its contract with Chesapeake Regional Medical Center on June 1 unless the two can reach an agreement over reimbursement rates.

The move would mean that Chesapeake Regional, a public hospital in the state’s second-largest city, would no longer be considered in-network for people in the Hampton Roads region who have Cigna insurance through their employers.

In a statement, Cigna said the company is pulling out of the contract because “the majority of services that our customers access at Chesapeake General are more expensive than other local hospitals, and each year their rate increases have outpaced other area hospitals.”

Chesapeake General is the former name of Chesapeake Regional Medical Center, which was rebranded in 2010.

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