Mon Jan 05 14:30:00 UTC 2026: ## Cigna and East Tennessee Children’s Hospital Face Off, Thousands Could Lose Coverage
KNOXVILLE, Tenn. (WVLT) – A contract dispute between Cigna and East Tennessee Children’s Hospital (ETCH) threatens to leave thousands of patients without in-network coverage, potentially disrupting access to specialized pediatric care in the region. The current agreement is set to expire on March 1st.
The two parties are publicly disagreeing over who initiated the contract termination. Cigna claims ETCH threatened to leave the network unless their demands for higher payments were met. However, a hospital representative stated that Cigna issued a termination notice on May 27, 2025, effectively ending the 18-year agreement.
Cigna argues that ETCH’s costs are significantly higher than other hospitals in the area, prompting their decision. “Unfortunately, ETCH is already significantly more expensive than other local hospitals, and they are threatening to leave our network March 1 unless we agree to their demands for more,” Cigna said in a statement.
ETCH, the only children’s hospital in East Tennessee, counters that its costs are comparable to other freestanding children’s hospitals across the country, making Cigna’s comparison unfair. “Cigna is making an apples to oranges comparison as we are the only children’s hospital in the region,” stated an ETCH representative. “Our expenses are in-line or less than those of any other free-standing children’s hospitals like us in the country.”
The potential contract termination impacts an estimated 27,000 patients in East Tennessee who rely on Cigna coverage. Families were notified of the situation on December 30th in a letter from ETCH, leaving them with a limited timeframe to potentially find alternative sources for specialized medical care.
Despite the public dispute, both Cigna and ETCH claim they are committed to reaching a resolution. “We remain committed to negotiating in good faith to reach a fair, sustainable agreement before the contract ends on March 1, and we hope that ETCH will do what is right for this community,” Cigna said.
ETCH echoed this sentiment, stating, “Repeated good-faith efforts have been made by us, and we will continue to advocate for our patients and families.” The clock is ticking as the March 1st deadline approaches, leaving the community anxiously awaiting a resolution to avoid a potentially devastating disruption in pediatric healthcare access.
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