Blue Cross and Blue Shield of Texas has reached an agreement with UT Southwestern and Texas Health Resources, ending a contract dispute that left thousands of North Texans uncertain about their healthcare coverage since April 1. The new deal, announced late Friday night, will allow patients to access their medical providers at in-network rates retroactively to April 1. This comes after months of negotiations between the insurer and Southwestern Health Resources, which includes UT Southwestern and Texas Health Resources.
The contract lapse affected an estimated 25,000 educators, mainly in large Dallas-Fort Worth school districts, according to the Teacher Retirement System of Texas. Contract disputes between insurers and healthcare providers are common, as they usually renegotiate contracts every few years. Devon Ukert, a health economist at Texas A&M University, said such disputes cause significant uncertainty for individuals.
Contract dispute resolved for North Texans
Keller resident Hunter Mixson, who underwent emergency open-heart surgery at age 29, was worried about being forced to change doctors amid possible complications. “I would like those doctors to be able to take care of me, but they are not in-network anymore,” Mixson said before the dispute was resolved.
Katrina Daniel, chief health officer of the Teacher Retirement System, noted that the lapse in coverage was frightening for people to navigate. She also highlighted that a 2% to 3% premium increase could result in hundreds of dollars per year for individual educators and their families. Blue Cross and Blue Shield of Texas assured that any claims processed as out-of-network during the lapse would be retroactively corrected.
Members with additional questions were advised to contact the number on their insurance cards. The new agreement provides relief and continuity for Blue Cross and Blue Shield of Texas members who depend on these hospitals and their associated providers for healthcare services.
