Beginning April 1, Memorial Hermann Health System facilities and physicians are 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 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.

BCBSTX noted that it has signed separate contracts with some community doctors and health care professionals who were previously affiliated with Memorial Hermann, allowing members to continue seeing those doctors at in-network rates. The insurer also emphasized that members still have access to what it calls a “robust network” of hospitals, physicians and facilities across Texas. Members can check 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 began efforts to renegotiate in August 2025 and remains committed to reaching a fair deal. The system is asking patients to advocate by contacting BCBSTX and their employers’ HR departments to express support for restoring Memorial Hermann to the network.

Some patients — including those who are pregnant, being treated for a disability, or facing acute or life-threatening conditions — may still qualify for in-network rates under Continuity of Care provisions. Eligible members can complete a Continuity of Care Request Form or contact BCBSTX directly for guidance.

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Memorial Hermann Health System statement:

“Where you receive your care, and from whom, should not be dictated by your insurance plan.

“For more than 118 years, Memorial Hermann Health System has proudly served our community, providing personalized, compassionate and high-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 providers come to work with one shared purpose: to improve the health of all those we serve. Fulfilling that mission depends on patients and the community being able to receive care from caregivers they know and trust.”

“After months of active negotiations, Blue Cross and Blue Shield of Texas and Memorial Hermann Health System could not reach a contract agreement that reflects our joint commitment to access to affordable, quality health care for our members and patients. We remain open to reaching an agreement with Memorial Hermann Health System that ensures that we can fairly and prudently cover the cost of care appropriately on behalf our members. We take any potential disruption in our network of providers very seriously and will make concentrated efforts to ensure our customers, members and their families have continuity of care if an agreement cannot be reached.”

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