Baylor Scott & White reaches deal with Blue Cross insurance to keep benefits in-network

Baylor Scott & White Health and Blue Cross Blue Shield of Texas have settled a monthslong contract dispute, ensuring the health system's services will remain in-network for patients insured by Blue Cross.

The hospital system and the insurer first announced in June that they were at odds over reimbursement rates for health care costs between Blue Cross and BSWH providers. Blue Cross representatives said BSWH planned to terminate its physician and hospital agreements with the insurer unless "we significantly increase what we pay them."

The two parties had alerted patients with Blue Cross insurance that they could see increased out-of-pocket costs at BSWH facilities if the two parties did not reach a deal by July 1 . That deadline was later extended to Oct. 1.

On Sunday, BSWH notified affected patients that a deal had been reached.

"As related documents are finalized, BCBS members will continue receiving uninterrupted, in-network care from BSWH. We're committed to your well-being and are grateful for your patience during this time," representatives said in an email to patients.

In a statement to patients, Blue Cross said the new agreement "protects your access to quality care at fair prices."

BSWH is the largest nonprofit health system in Texas, with 51 hospitals and more than 800 patient care sites. It has a growing presence in Central Texas, with hospitals in Austin, Buda, Lakeway, Marble Falls, Round Rock and Taylor, along with several outpatient facilities and clinics.

Blue Cross Blue Shield of Texas is the state's most active insurer, taking up around a quarter of the health insurance market. In recent years, it has resolved several similar contract disputes at the eleventh hour, including a 2023 deal with Ascension that was brokered days before a deadline .