Some patients treated in the Baptist Health system with insurance plans through Cigna and United Healthcare are being warned that they will be out of network on Jan. 1 if negotiations don’t lead to a new contract before year’s end.

United Healthcare said those on its commercial, Medicare Advantage, Group Retiree and Dual Special Needs plans would be affected, listing Baptist Health facilities in Central Arkansas, Arkadelphia, the Fort Smith Area, Hot Spring County, Heber Springs and Stuttgart.

According to a Baptist Health memo dated Oct. 16, patients insured by Cigna commercial insurance will be outof-network with Baptist Health on Jan. 1; it also says that network changes “should not” affect state retirees participating in United Healthcare’s group Medicare Advantage preferred provider organization (PPO) plan.

United Healthcare said Tuesday that negotiations are continuing in good faith. A spokesperson said: “Our goal is to renew our long-standing relationship with Baptist Health to ensure the members we serve have continued, uninterrupted access to Baptist’s hospitals and physicians.

“Unfortunately, Baptist continues to request double-digit price hikes that are neither affordable nor sustainable. We are proposing meaningful, market-competitive rate increases that ensure Baptist is reimbursed fairly. We are asking Baptist to work with us to reach an agreement that families and employers across Arkansas can afford.”

In a statement, Baptist Health spokeswoman Cara Wade noted the recent inflationary surge, Arkansas hospitals’ “unprecedented rise in costs” for wages, supplies and pharmaceuticals, and those hospitals’ low reimbursement rates.

“While Baptist Health continues to improve operational efficiencies and cost management, it is not enough to overcome the growing external cost pressures,” she said.

“Over the past several years, Baptist Health has worked with our insurance payors to develop a path towards addressing the nationally low reimbursement rates. While we have found mutually beneficial ways to move forward with most payors, we have not yet been able to reach an agreement with all payors for 2024.”

Baptist Health, with 11 hospitals, is the largest non-profit healthcare system in Arkansas.

A health care system going out-of-network with an insurer is not a qualifying life event under the Affordable Care Act, so those affected by an impact between insurer and health care provider would not be able to move to different coverage plans.

Wade noted, however, that patients with employer-covered health insurance who have eligible medical conditions such as pregnancies can choose to continue receiving Baptist Health care for up to 90 days if the organization would go out of network with the insurers.

“We recommend patients contact their insurance plan to determine eligibility and complete any applicable forms,” she said. “All patients will continue to have access to Baptist Health hospitals for emergency services. Regardless of network status, state retirees should continue to have access to Baptist Health under the various plans available, but again, we recommend contracting your insurance plan for details.”

Communication from United Healthcare and Cigna both stated that customers will continue to be in-network with other Arkansas hospitals and medical professionals.

“We continue to negotiate in good faith with Baptist Health and hope to reach agreement on a new contract that will keep health care affordable for the people we both serve,” a Cigna spokesperson said.

United Healthcare went out of network with the Conway Regional Health System earlier this year, on June 30, after the company said that the health care network wanted a 65% “price hike” in a new contract, affecting thousands of patients. The two sides eventually effective Aug. 15.