CHESAPEAKE, Va. (WAVY) – A spokesperson from Chesapeake Regional Medical Center tells 10 On Your Side that Cigna Healthcare’s contract with the hospital has been extended until June 30.

This announcement comes after their contract was originally supposed to expire on June 1.

Chesapeake Regional told 10 On Your Side earlier this month that Cigna wants the health system to lower reimbursement rates. Cigna told WAVY it wants to keep care affordable, especially because of inflation.

Cigna released the following statement regarding the reimbursement rate increases at Chesapeake Regional:

Unfortunately, the majority of services that our customers access at Chesapeake General are more expensive than other local hospitals, and each year their rate increases have outpaced other area hospitals.

Statement from Cigna Healthcare

Chesapeake Regional President & CEO Reese Jackson told 10 On Your Side that lowering reimbursement rates is unsustainable.

“In terms of who has the money to spare, our nursing salaries are going up. Our cost of providing other medical services is going up. I don’t think they face the same challenges we face,” Jackson explained.