The University of California Health system and Cigna have agreed to extend their contract negotiations by 45 days, moving the deadline past the original July 1 target. The extension provides additional time for the two parties to finalize a new multiyear agreement. Steve Telliano, a spokesperson for UC Davis Health, confirmed the arrangement in an email on Tuesday. He stated that patients with Cigna coverage will continue to receive services without interruption during the extension period.
UC Davis Health has indicated that its negotiators remain optimistic about reaching a deal by mid-August, when the extension is set to expire. The health system released a notice to patients on Tuesday outlining the situation. That communication also advised individuals with Cigna coverage to expect further details regarding their specific plans within the current week. More comprehensive information about affected health plans and providers is available on the official websites for both Cigna and UC Davis Health.
The negotiations involve a significant portion of the local patient population. The extension covers approximately 100 patients enrolled in Cigna HMO plans within the Sacramento area. It may also impact several thousand additional patients who hold Cigna PPO plans, though the hospital system did not provide precise figures for the latter group.
The two sides have held diverging views on the terms of the potential deal. UC Davis Health has previously stated that it is seeking reasonable payment increases to offset rising operational costs for its hospitals. In contrast, Cigna has characterized the health system’s proposals as unsustainable and significantly above standard market rates. The insurer described the situation as a dispute over financial terms that required more time to resolve.
Cigna representatives did not respond to requests for comment on Tuesday. However, the insurer issued a notice to patients on Monday stating that the groups were working on the extension to allow time to solidify a longer-term deal. The notice emphasized that the extension was intended to facilitate continued discussions rather than signal a breakdown in talks.
