Baylor Scott & White Health to Cease Texas Medicaid and Individual Marketplace Plans

Baylor Scott & White Health has announced strategic changes in its insurance division, planning to cease offering Texas Medicaid and Individual Marketplace plans within the coming years. The organization plans to exit the Medicaid Managed Care Program by August 31, 2026, and discontinue individual Marketplace Plans after the end of 2026. These decisions come amidst evolving regulatory compliance requirements and market dynamics.

Despite these adjustments, Baylor Scott & White affiliated hospitals, clinics, and providers will continue accepting Medicaid and marketplace health plans from other carriers. This change impacts only members enrolled through Baylor Scott & White Health Plan. Upon obtaining necessary regulatory approvals, affected members will receive guidance and support to navigate their coverage options effectively.

A company spokesperson emphasized that "Patient care is not changing at Baylor Scott & White Health. This is a change for health insurance through Baylor Scott & White Health Plan." Influences include a recent state Medicaid procurement process and challenges in the Individual Marketplace, leading to the non-renewal of contracts outside Lubbock, where no facilities currently exist.

This operational shift affects approximately 3.5% of Texas' Medicaid participants and 2.6% of Marketplace customers, representing about 125,000 and 100,000 individuals, respectively. Coverage will continue until the completion of current enrollment periods, ensuring minimal disruption. Furthermore, certain roles related to Medicaid and Marketplace operations will be affected, impacting 65 positions in North Texas and 321 roles statewide.

Baylor Scott & White Health is committed to supporting affected employees by offering resources such as career guidance, priority access to internal openings, training for high-demand clinical roles, relocation support, and extended medical benefits to maintain continuity of care coverage. These efforts align with the organization's focus on effective risk management and workforce transition amid the evolving healthcare landscape.