Blue Cross Blue Shield of Texas ‘unwilling’ to negotiation contract terms with Covenant Health, officials release statement

Lubok, Texas (press launch) Service of sufferers, particularly those that are in essentially the most weak, is on the coronary heart of the well being mission that’s not supposed for revenue. Our capacity to serve our mission and our society is significantly affected by our partnerships with insurance coverage corporations. That’s the reason the period was fastened and actively negotiated with a brand new settlement with Blue Cross Blue Protect of Texas since December 2024.
Throughout these negotiations, the purpose of the covenant was to achieve the phrases of the honest and equitable contract. Sadly, Blue Cross Blue Protect of Texas remains to be unwilling to supply appropriate cost for biomedic healthcare companies. It will depart greater than 140,000 folks with out accessing hospitals and presenter in Texas after the tip of the many years on July 31, 2025. It will have an effect on people and households from 20 provinces looking for to take care of the medical covenant group, Grace Clinic, and all hospitals.
“We’re deeply concerned about our neighbors and associates who serve them and who’re overlaying these contracts and we need to make sure the continuity of care. On the identical time, enough compensation is important similar to inflation, world provide chain problems, and extreme well being care shortages which have paid the price of take care of sufferers,” stated Bruce White, CEO.
Excessive prices of well being care might be attributed to a wide range of advanced and interconnected components. Since 2022, the covenant has witnessed a ten % enhance in employment prices, a rise of seven % in medication prices and a rise of roughly 15 % in medical provides.
Whereas the covenant works on daily basis to fight the prices of accelerating care, we can not do that on their very own. Insurance coverage corporations, similar to Blue Cross Blue Protect of Texas, should be a part of working with well being methods similar to our methods to keep up native care inside their attain.
The Blue Cross Blue Protect of Texas, the HCSC Division of Well being Companies (HCSC), is the fifth largest medical health insurance firm in the US and the biggest in Texas. In accordance with Texas State knowledge, Blue Cross Blue Protect of Texas has elevated its installments greater than 23 %, which led to the annual income of corporations, whereas will increase in service suppliers had been minimal.
If the period leaves the community, Blue Cross Blue Protect of Texas could recommend that there are different service suppliers prepared to just accept their members. Nonetheless, many of those service suppliers are already of their capability and can’t face extra sufferers.
Between mid -September 2024 and Might 2025, well being emergency departments handled 348 sufferers from the Blue Benefit characteristic (Bavant (Bav), which incorporates about 20,000 members. Amongst them, solely three sufferers – lower than 1 % – had been accepted for transport to UMC attributable to restrictions similar to mattress availability and employment lack, though UMC is just not in conversion. This raises nice considerations in regards to the UMC capacity to cope with the transfers of sufferers from the biggest inhabitants of the biggest PPO/HMO, which incorporates about 140,000 members.
One other answer offered by Blue Cross Blue Protect is for wholesome sufferers to search out care exterior the native area. Blue Cross Blue Protect remains to be dissatisfied with what’s required to supply care in West Texas and what’s acceptable to our society. It’s unreasonable to encourage our sufferers to seek for well being care past their group, and it contradicts the purpose of the well being covenant of offering excessive -quality care close to the home.
“We’re negotiating to achieve honest situations to make sure our sufferers proceed to obtain the care they want and deserve it with out disruption,” stated Dr. Amy Thompson, CEO of Lubbock Service. “We hope that Blue Cross Blue Protect of Texas will acknowledge this challenge and work cooperatively with us to keep up well being care throughout the attain of all in our society.”
Well being emergency departments stay accessible to all members of society, no matter their insurance coverage standing. Within the case of medical emergency, please seek for care instantly.
Our doorways stay open to all, and we’ll proceed to welcome rubber with Blue Cross Blue Protect of Texas. Nonetheless, if they continue to be unwilling to conform to an appropriate and sustainable monetary cost fee within the very brief time period, the covenant will probably be thought-about exterior the community within the Blue Cross Blue Protect for the Texas members after the contracts on August 1, 2025. We hope that exterior the community will probably be a brief -term downside; Nonetheless, please keep in mind that our Covenants will proceed to re -fill out medication requests and reply to the affected person’s issues throughout this interruption.
The well being of the covenant remains to be on the community for many business insurance coverage corporations. Please go to insurance coverage and well being plans Covenant Well being Proventnce to find out your protection stage with a wholesome well being supplier.
For added questions or assist, our contract group is out there from 8:00 am to five:00 pm, from Monday to Friday, on (806) 725-6663.
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2025-07-24 15:30:00