TEMPLE, Texas (KWTX) – Baylor Scott & White Health Plan (BSWHP) says it plans to leave the Texas Medicaid Managed Care Program and stop offering individual marketplace coverage in 2026.
In a statement issued Wednesday, BSWHP said it has notified regulators and informed employees of its intent to exit Medicaid managed care on Aug. 31, 2026, and to discontinue Individual Marketplace Plans after Dec. 31, 2026.
The health plan said the move reflects the state’s Medicaid procurement decision and “Individual Marketplace complexities.”
BSWHP said it currently serves about 3.5% of Texas Medicaid customers and 2.6% of marketplace customers.
The organization said that, if regulators approve the change, it will contact affected members with additional information and support. Baylor Scott & White also emphasized that its hospitals and clinics will continue to accept Medicaid and marketplace insurance plans.
Looking ahead, the health plan said it will focus on serving employer groups and Medicare Advantage customers “through an integrated experience.”
BSWHP said some roles supporting its Medicaid and marketplace lines of business will be impacted, along with a limited number of other non-bedside roles.
The organization said it plans to offer affected employees resources such as dedicated career guidance, priority access to open roles within the system, funded reskilling for high-demand clinical positions and extended medical benefits.
Baylor Scott & White said it continues to invest in direct patient care roles and has added nearly 500 jobs in Temple and across Central Texas over the past year. The system said it is recruiting for more than 3,000 positions across its network.
This story is based on a statement from Baylor Scott & White Health Plan.
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