UCSF Health and Cigna announced a new in-network agreement on June 26, averting an out-of-network divorce that would have hit patients July 1. Amazon's One Medical, embedded inside UCSF Medical Group, was in the at-risk pool. Financial terms remain confidential.

UCSF Health and Cigna announced a new in-network agreement on June 26, four days after UC Health issued a formal contract-termination notice and five days before the July 1 deadline that would have pushed Cigna members into costly out-of-network territory at most UCSF facilities.

The agreement keeps UCSF Medical Center, UCSF Benioff Children's Hospitals in San Francisco and Oakland, Langley Porter Psychiatric Hospital, and UCSF Medical Group in-network for Cigna's commercial OAP, PPO, HMO, and LocalPlus plans. What the announcement doesn't provide: any financial terms. The deal is described only as "equitable" by UCSF; neither side has disclosed the rate percentage, contract length, or cost-management concessions, if any.

The underlying dispute turned on reimbursement rates, with each party offering an incompatible arithmetic. UC Health said it sought "single-digit cost increases" to cover inflation, medical-supply costs, and competitive wages. Cigna's public newsroom framed UC's ask as "approaching a 30% increase over four years" — figures that aren't necessarily contradictory (roughly 7% annually compounds to about 30% over four years) but illustrate how little of the actual negotiation became public.

One tech-adjacent wrinkle: Cigna's termination notice explicitly listed "UCSF Medical Group (includes One Medical Group)" among the facilities that would have gone out-of-network July 1. One Medical — the primary-care chain Amazon acquired in 2023 for roughly $3.9 billion and operates out of 38 Bay Area locations — maintains a referral partnership with UCSF Health and is organizationally embedded in UCSF Medical Group. It was caught in the dispute as a tenant of that structure, not as an independent negotiating party. Amazon has not commented.

UCSF was not the only UC campus in this fight. UC Davis Health had publicly announced it would go out-of-network with Cigna effective July 1; as of the UCSF deal, no agreement had been reported for Davis. UCLA Health and Cigna mutually agreed to extend their existing contract through July 31, 2026, per UCLA Health's patient page updated June 25 — a deadline that remains live as negotiations continue.

The UCSF-Cigna resolution closes the immediate crisis for Bay Area Cigna members, but it settles nothing about the underlying cost-of-care math. HMO members may receive updated network communications from Cigna in coming weeks; PPO members are told no action is required. Patients with questions can reach the UCSF Referral Center at (888) 689-8273. The terms that actually moved Cigna off its termination notice — and whether the final number looks more like UC's framing or Cigna's — are not on the table yet.