Cigna reverses decision to terminate contract with East Tennessee Children’s Hospital

Patients at East Tennessee Children’s Hospital using Cigna insurance received welcome news on Friday, as East Tennessee Children’s Hospital announced Cigna reversed its previous decision to terminate its contract with the hospital.

This comes after an ongoing dispute between the hospital and the insurance agency that started when ETCH leaders said they were notified that Cigna wanted to initiate a termination of a current contract on May 27. The termination would have been effective starting March 1.

The hospital told 10News that after our coverage about the possibility of patients losing coverage, Cigna sent a «comprehensive proposal.»

After reviewing the proposal in January, an East Tennessee Children’s Hospital spokesperson said they were still in negotiations, but were hoping to come to an agreement soon.

However, ETCH announced on Friday that Cigna has reversed its decision to terminate its agreement with the hospital and that ETCH has accepted the reversal.

«This is a positive outcome for the patients and families we serve,» an ETCH spokesperson said. «As a result, the longstanding existing agreement between Cigna and ETCH remains in effect without interruption.»