Thousands of patients across the Houston area are now dealing with confusion and financial uncertainty after a major contract dispute between Memorial Hermann Health System and Blue Cross Blue Shield of Texas.
As of April 1, Memorial Hermann is officially out-of-network for many Blue Cross Blue Shield of Texas customers—leaving some patients scrambling to figure out how they’ll continue their care.
“Now I’m going to have to start from zero”
For Robert Turney, the impact is immediate—and deeply personal.
Turney is living with serious chronic conditions that require constant treatment.
“Three days a week, I spend in dialysis… I have a procedure called the paracentesis that helps manage some of the complications" Turney said.
Now, with his provider out-of-network, he’s racing against the clock. His next appointment is in less than a week—and he’s not sure if it will be covered.
“It was upsetting because I’ve gone through a lot, and I’ve worked very hard to get everything set up. Now I’m going to have to start from zero” Turney said.
Without insurance coverage, the cost of care could be overwhelming.
“It’s between $15,000 and $20,000 a pop” Turney said.
Why this is happening
The disruption comes after months of negotiations between the hospital system and the insurer failed to produce a new contract.
Memorial Hermann says Blue Cross Blue Shield made “unreasonable demands” that could jeopardize patient care and ignore the financial realities facing providers.
Blue Cross Blue Shield of Texas, meanwhile, says it remains open to reaching an agreement that ensures “affordable, quality health care” for its members.
In the meantime, patients are left navigating the fallout—often with little notice.
What this means for patients
For many, being out-of-network could lead to:
- Higher co-pays
- Larger deductibles
- Unexpected medical bills
- Disruptions to ongoing treatment
Patients in the middle of care—especially those with chronic or complex conditions—face the greatest risk.
What you can do right now
Health advocate Bonnie Sheeren says patients need to act quickly and be proactive.
For those with serious conditions:
“If it’s a complex case with a serious diagnosis, talking to that case manager on Blue Cross Blue Shield and working with that person is going to [be] very important” Sheeren said.
For patients who simply want to keep their current doctor, there may be another option before switching providers:
“You can talk to their office manager… they might be listed… with another group… and it’s possible they might be taking Blue Cross Blue Shield" Sheeren said.
A possible lifeline: continuity of care
Patients in the middle of treatment may qualify for Blue Cross Blue Shield’s “continuity of care” program.
This could allow them to temporarily continue seeing their current doctors at in-network rates—but it’s not automatic.
Patients must apply, and there is no guaranteed timeline for a decision.
Bottom line
Both Memorial Hermann Health System and Blue Cross Blue Shield of Texas say they’re still open to negotiations.
But until a deal is reached, patients like Robert Turney are left making difficult decisions—about their care, their finances, and their future.