Blue Cross Blue Shield coverage ended for dozens of North Texas hospitals

Blue Cross Blue Shield has ended its coverage at dozens of hospitals in North Texas.

Why you should care:

Contract negotiations failed ahead of the April 1 deadline and that leaves thousands of North Texans out of the network and looking for new medical providers.

Texas Health Resources and UT Southwestern System are two of the largest hospital networks in North Texas.

As of April 1, due to a pivotal expired contract, patients who have medical insurance through Blue Cross Blue Shield of Texas are no longer covered under most plans at hospitals in those systems.

A corporate impasse has been brewing since late 2024 between Southwestern Health Resources, the hospital’s parent group, and Blue Cross Blue Shield Texas.

The insurance breakdown presents patient care challenges for perhaps tens of thousands of people with scheduled medical appointments, procedures, and even scheduled surgeries.

For many, that means selecting from the list of remaining Blue Cross Blue Shield of Texas providers or paying out-of-pocket for those under UT-Southwestern or Texas Health Resources.

What they're saying:

Both entities say negotiations are ongoing and that they’re committed to minimizing the disruption by guiding affected patients through the transition.

Southwestern Health released a statement Tuesday afternoon, saying in part, "Despite months of negotiations, BCBSTX remained unwilling to accept Southwestern Health Resources' requests for equitable reimbursement to cover the rising costs of providing quality care."

A statement from Blue Cross Blue Shield of Texas appears to react to the hospitals' parent group, in part, saying, "We understand and are sensitive to the difficulties hospitals are facing with labor, supply, and other cost pressures. Unfortunately, we couldn't reach an agreement that protects the interests of our members and customers, who are facing those same pressures."