HOUSTON — Memorial Hermann Health System and Blue Cross Blue Shield of Texas (BCBSTX) have officially parted ways after months of negotiation, leaving the Houston-based hospital system out of network with the insurer as of April 1, 2026.
Both sides said they worked for months to reach an agreement, but couldn’t settle on terms. Memorial Hermann said BCBSTX’s “unreasonable demands” and drawn-out bargaining tactics put patients and families in a difficult position. BCBSTX, meanwhile, said its priority is protecting the interests of its members and customers and that it could not agree to new contracts that didn’t meet that standard.
With the contract’s expiration, Memorial Hermann hospitals, facilities, and affiliated physicians are now out-of-network for BCBSTX Commercial and Blue Advantage Marketplace plans, as well as out-of-state Blue Cross Blue Shield plans using the local BCBSTX network…