CIGNA Announces Possibility of Rex and UNC Hospitals Leaving Network

As of January 1, 2010, there is a possibility that UNC Hospitals, Rex Hospital and UNC Physicians & Associates will no longer participate in the CIGNA network. If no agreement is reached between CIGNA and these provider groups by January 1, all non-emergency or elected care services provided at these facilities will be considered out-of-network. Additionally, out-of-network providers may balance-bill members for the total cost of services received resulting in higher out-of-pocket costs for your employees.

The potential disruption would also affect any doctors who have exclusive privileges with or whose practice is owned by UNC Hospitals or Rex Hospital. Unless these doctors obtain privileges with a hospital that is included in the CIGNA network, their participation would also end at the same time the UNC Hospitals and Rex Hospital agreements terminate.

If UNC Hospitals, Rex Hospital and UNC Physicians & Associates leave the CIGNA network, CIGNA will help all affected members make the transition to another hospital and, if necessary, primary care physician or specialist who is a network participant. Members are free to select a primary care physician or specialist of their choice from the provider list at www.mycigna.com, or by calling Customer Service at the toll-free number on their ID card.

Emergency Room Services
In the event these providers leave the CIGNA network and a member or enrolled dependent requires emergency room services at UNC Hospitals or Rex Hospital, the individual’s care will be covered under standard emergency room benefits. If the individual requires admission from the emergency room, the in-patient stay would be treated at the rate for in-network facilities.

Continuity of Care for Special Health Considerations
Members or enrolled dependents that have special health considerations, such as pregnancy or illnesses that are acute, terminal or chronic (life-threatening, degenerative or disabling) may be eligible for Continuity of Care benefits. If an agreement is not reached within the next few weeks, these members are encouraged to contact CIGNA to inquire about Continuity of Care eligibility and how to apply.

Negotiations are Continuing
Please note that CIGNA is continuing negotiations with these providers and is optimistic that an agreement can be reached prior to January 1. We will notify you in the event of any change in negotiation status.

It also should be noted that CIGNA is in the process of notifying all affected members, group administrators and physicians about this developing situation. In the meantime, if you have any questions about the potential impact of these changes to the CIGNA network, please contact our office at 919-403-1986.

Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.

December 2, 2009

Hill, Chesson & Woody
Employee Benefit Services

194 Finley Golf Course Road, Suite 200,
Chapel Hill, NC 27517
Phone: 919.403.1986
Fax: 919.869-2063

www.hcwbenefits.com