Starting April 1, Memorial Hermann Health System facilities and physicians will be out of network for some BCBSTX plans.
HOUSTON — Memorial Hermann Health System and Blue Cross Blue Shield of Texas (BCBSTX) have officially parted ways after months of negotiations, with the Houston-based hospital system going out of network with the insurer as of April 1, 2026.
Both sides said they had tried for months to reach an agreement but were unable to finalize terms. Memorial Hermann said BCBSTX’s “unreasonable demands” and protracted negotiation tactics are putting patients and their families in a difficult position. Meanwhile, BCBSTX said its priority is to protect the interests of its members and customers and that it cannot agree to new contracts that do not meet that standard.
Due to the contract expiration, Memorial Hermann Hospital, facilities and affiliated physicians are no longer in-network for BCBSTX Commercial and Blue Advantage Marketplace plans, as well as out-of-state Blue Cross Blue Shield plans that use the local BCBSTX network.
BCBSTX noted that it has entered into separate agreements with some local physicians and medical professionals that were previously affiliated with Memorial Hermann, allowing members to continue seeing those physicians at in-network rates. The insurer also emphasized that members will continue to have access to what it calls a “robust network” of hospitals, doctors and facilities across Texas. Members can view plan-specific options by logging into their account online through the BCBSTX app or by calling the number on their Member ID card.
Memorial Hermann said it will begin renegotiation efforts in August 2025 and remains committed to reaching a fair agreement. The system is asking patients to advocate by contacting BCBSTX and their employer’s human resources department to voice their support for Memorial Hermann’s return to the network.
Some patients (including those who are pregnant, being treated for a disability, or facing an acute or life-threatening illness) may continue to be eligible for in-network rates under the Continuum of Care provision. Eligible members may complete the Continuation of Treatment Request Form or contact BCBSTX directly for instructions.
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Memorial statement from Hermann Health System:
“Where and from whom you receive care should not be determined by your insurance plan.
“For more than 118 years, Memorial Hermann Health System has proudly served our communities, providing personalized, compassionate, quality care. Whether in our hospitals, rehabilitation facilities, outpatient clinics or urgent care centers, the Greater Houston community trusts us, and we take that very seriously.
“Twenty-four hours a day, 365 days a year, Memorial Hermann employees and healthcare professionals come to work with a common purpose: to improve the health of all the people we serve. Achieving that mission depends on our patients and communities receiving care from caregivers they know and trust.”
“After months of active negotiations, Blue Cross and Blue Shield of Texas and Memorial Hermann Health System were unable to reach a contract agreement that reflects our joint commitment to ensuring that our members and patients have access to affordable, quality health care. We remain positive about reaching an agreement with Memorial Hermann Health System that will ensure coverage. We take potential disruptions in our provider network very seriously and will work intensively to ensure continuity of care for our customers, members, and their families if an agreement is not reached.”
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