CommonSpirit Health terminating services at Blue Cross and Blue Shield of Texas

BRYAN, Texas (KBTX) - Health insurance provider Blue Cross and Blue Shield of Texas (BCBSTX) has said that CommonSpirit Health has notified the insurance provider that they intend to leave the network on Dec. 16, 2020. This change would affect customers in Brazos, Burleson, Grimes, Madison, and Montgomery counties.

A statement from BCBSTX said the insurance company is working towards a mutually beneficial agreement.

“In terminating our contracts, CommonSpirit is not honoring agreements that kept its hospitals in our networks through 2021,” the statement said. “Instead, we are forced to renegotiate and divert our attention from the global pandemic at hand.”

A statement from CHI St. Luke’s Health said that after months of discussions and negotiations, CHI St. Luke’s Health, including Baylor St. Luke’s Medical Center, issued a written 180-day Notice of Termination with Intent to Renegotiate to BCBSTX.

According to the insurance company, CommonSpirit is proposing rate increases that would drive up the cost of health care in Houston, Bryan-College Station, Lufkin and the rest of the southeast Texas communities they serve. They said that BCBSTX reimbursed CHI St. Luke’s Health at rates far below those of other similar healthcare providers in the market for years.

CHI St. Luke’s Health system and Baylor St. Luke’s Medical Center said they are in jeopardy without reasonable reimbursement rates from BCBSTX

“It is unfortunate that Blue Cross Blue Shield of Texas has not been more willing to reimburse at levels that enable us to provide essential services," said Dr. T. Doug Lawson, CEO of CHI St. Luke’s Health. "We were forced to issue the notice in an effort to motivate Blue Cross Blue Shield of Texas to agree to rates that enable us to preserve access and care to critical health services for the patients we serve throughout our region, especially as our community reels from the impact of COVID-19.”

“We think the demands are unreasonable and will do all we can to represent our members and customers in this negotiation,” the statement from BCBSTX said. "We want fair contracts that balance the need of our members and providers.

The following facilities are part of this negotiation:

If CHI St. Luke’s is unable to reach a mutual agreement with BCBSTX by December 16, 2020, the termination will take effect. During this period, CHI St. Luke’s Health remains in-network with BCBSTX.

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