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Health coverage for thousands of state employees could be disrupted

By Joel Funk

Wyoming Tribune Eagle

Via Wyoming News Exchange

CHEYENNE – Health care for thousands of state employees and their families could be disrupted if Cigna Network and Cheyenne Regional Medical Group don’t reach an agreement in less than a month.

Cigna, which administers Wyoming’s Employees’ Group Insurance program, has been in negotiations with Cheyenne Regional Medical Group for the past year, according to a statement Friday from Cheyenne Regional Medical Center.

The statement acknowledged that in late April, Cigna sent a letter to its clients stating CRMG might no longer be part of its network of health-care providers participating in the state’s insurance network as of June 1. Cheyenne Regional Medical Center is included as one of the providers in that network.

That could leave state employees, their family members and others not employed by the state who are patients of health-care providers associated with CRMG in the lurch if an agreement is not reached by that date. If Cigna decides to place CRMG out of its network, around 3,000 people in the Laramie County area would likely be affected, said Kathy Baker, CRMC spokeswoman.

It appears to be part of the continued pressure on health systems nationally to reduce reimbursement rates coming to southeast Wyoming, CRMG said in its statement Friday.

But the decision to possibly terminate CRMG from the insurer’s network falls on Cigna, according to a statement from CRMG on Monday. Negotiations continue this week, with CRMG fully intending to “come to a reasonable resolution to prevent disruption to patients.” The disagreement remained unresolved by press time Monday, with CRMG calling on Cigna to move the needle.

“The negotiations hinge on Cigna’s request for a second steep fee-for-service reduction in a 12-month period,” Monday’s statement from CRMG read. “CRMG has countered with a proposed model that would include a combination of the rate reductions requested by Cigna, in addition to incentives that focus on wellness and prevention and chronic-care management – all of which are offered in CRMG’s nationally certified patient-centered medical homes and would have a greater potential to improve health outcomes and reduce the overall cost of care for the patients and the insurance company.”

Cigna’s consideration of ending its contract with CRMG comes down to its ability to provide affordable rates, said Mark Slitt, a Cigna representative.

“For several years, our Cheyenne-area employer clients and their employees have expressed to us concern about the rising cost of their care,” Slitt said in an email. “Cheyenne Regional Medical Group’s rates don’t currently align with Cigna’s efforts to keep health care affordable.”

Negotiations in “good faith” would continue, Slitt said. But he said the contract will end June 1 if a deal is not reached.

Wyoming’s Employees’ Group Insurance covers active employees with the state, University of Wyoming, Wyoming community colleges and Natrona County School District. A fall 2017 analysis showed 47 percent of those employees covered were in the executive branch, 17 percent were at UW, 13 percent were retirees, 12 percent worked in Natrona County’s K-12 school district, and 10 percent were at the state’s seven community colleges.

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