Cigna Will Drop St. David’s HealthCare Oct. 1
The expiration of this network agreement will increase out-of-pocket costs for Cigna members using these hospitals.
Updated on Sept. 29, 2026 in Healthcare
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Cigna insurance plans will transition to out-of-network status for all St. David's HealthCare hospitals, freestanding emergency departments, and ambulatory centers beginning Oct. 1, 2026. The shift occurs as the insurer and the health system fail to reach a new contract agreement.
Why it matters
The impasse reflects a broader industry tension where hospitals demand higher reimbursement rates to cover rising operational costs, while insurers prioritize limiting payouts to manage premiums. Operators should anticipate potential patient disruption and increased billing complexity if a deal is not finalized.
The change affects the entire footprint of St. David's HealthCare facilities in Texas and Florida, shifting these locations out-of-network relative to current coverage benchmarks. While hospitals and freestanding centers are impacted, the system's urgent care locations and the Austin Diagnostic Clinic remain in-network.
The players
Cigna
A global health insurance and services provider that negotiates network coverage agreements with hospital systems.
St. David's HealthCare
A major health system operating hospitals and emergency facilities in Texas and Florida.
Hospital Corporation of America
A large national operator of healthcare facilities that manages the hospitals affected by this network change.
The details
The contract expiration mandates that patients seeking care at these facilities will move to out-of-network coverage status starting Oct. 1. While federal law requires emergency departments to stabilize patients regardless of insurance, elective and scheduled procedures will likely incur higher out-of-pocket costs. St. David's and Cigna are continuing negotiations to reach a new agreement before the deadline.
Timeline
The current contract between the parties expires on Sept. 30, 2026.
The out-of-network status officially begins on Oct. 1, 2026.
Market Landscape
This dispute follows a familiar cycle of contract leverage battles between major regional health systems and national payers. It marks a significant departure from current coverage norms for Cigna members, operating within the baseline requirements set by the Emergency Medical Treatment and Labor Act.
Owners and managers should verify whether their employee health plans include these specific facilities to prepare for potential cost increases. Patients seeking to maintain in-network pricing should call the number on their insurance card to request a continuity of care exception.
The takeaway
The breakdown in these contract negotiations serves as a reminder to review provider network status periodically to avoid unexpected out-of-pocket billing. Check current insurance directories before scheduling non-emergency procedures after Oct. 1 to avoid coverage gaps.
Further reading
For more on industry contracting trends, visit Healthcare.
Source note: This article includes information reported by The Dallas Morning News.
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