Covenant Health releases statement on ongoing negotiations with Blue Cross Blue Shield of Texas
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Diverging Reports Breakdown
Blue Cross Blue Shield ‘unwilling’ to negotiate with Covenant Health: Thousands at risk of losing in-network coverage
Covenant Health is warning South Plains patients that they could soon lose in-network insurance coverage. The hospital system reports its negotiations with Blue Cross Blue Shield have resulted in a stalemate. This will impact individuals and families from 20 counties who seek care at Covenant Medical Group, Grace Clinic, and all Covenant hospitals. If the two parties do not reach an agreement by that point, the hospital system will become out-of-network by Aug. 1, 2025. The negotiations began in December 2024, when Covenant asked the insurance provider for adequate reimbursement that accounts for the rising cost of patient care. If negotiations fail, Blue Cross has a “continuity of care” program, which is considered extraordinary when a member has a high-risk pregnancy, or a disabling condition such as high- risk pregnancy or a life-threatening illness. The insurance provider says it is committed to reaching an agreement that appropriately balances the concern with affordability and access for our members. The contract between Covenant Health and BlueCross Blue Shield ends July 31.
The hospital system reports its negotiations with Blue Cross Blue Shield have resulted in a stalemate, with Blue Cross not responding to Covenant for nearly two weeks.
Covenant released this statement on Thursday:
Throughout these negotiations, Covenant’s goal has been to reach fair and equitable contract terms. Unfortunately, Blue Cross Blue Shield of Texas remains unwilling to offer adequate reimbursement for vital health care services. This will leave more than 140,000 individuals without in-network access to Covenant’s hospitals and providers in Texas after the contracts expire on July 31, 2025. This will impact individuals and families from 20 counties who seek care at Covenant Medical Group, Grace Clinic, and all Covenant hospitals.
The negotiations began in December 2024, when Covenant asked the insurance provider for adequate reimbursement that accounts for the rising cost of patient care.
“The number one question people are going to ask is ‘is Covenant being greedy,’” Dr. Amy Thompson, the Chief Executive of Covenant’s Lubbock service area, said on Thursday. “When we look nationally and across the state, we feel like [these rates] are fair reimbursement.”
Covenant is a not-for-profit health system. Dr. Thompson says this increased reimbursement rate would not go toward salaries but rather offset the costs of running system hospitals.
Covenant reports a 10% increase in staffing costs, 7% increase in pharmaceutical costs, and a nearly 15% increase in the cost of medical supplies since 2022.
“We care deeply about our neighbors and friends we serve who are covered by these contracts and want to ensure continuity of care. At the same time, adequate reimbursement is essential as inflation, global supply chain disruptions and the severe shortage of health care personnel have driven up the cost of caring for patients,” said Bruce White, Chief Executive Officer Rural Service Area.
These negotiations are not unusual between hospital systems and insurance providers. Covenant claims Blue Cross Blue Shield has participated in seven similar negotiations across the state this year.
It also conducted negotiations with Medical Center Hospital in Midland in 2023.
Blue Cross Blue Shield sent this statement to KCBD on Thursday:
We are currently negotiating new contracts with Covenant Health to protect our members’ access to quality care.
We understand the challenges and cost pressures hospitals are facing, and we are working to reach an agreement that protects the interests of our members and customers, who are facing similar pressures.
We value Covenant Health’s services and remain committed to reaching an agreement that appropriately balances the concern with affordability and access for our members.
If new agreements are not reached, Covenant Health hospitals, facilities, doctors and health care professionals will leave our Blue Choice PPO℠ and Blue Essentials℠ networks on Aug. 1, 2025. Covenant Health already made the decision to leave our ParPlan effective April 23, 2025. We hope they’ll reconsider.
Our members continue to have access to a network of other doctors, health care professionals, hospitals, and facilities throughout West Texas.
For the latest updates, visit bcbstx.com/covenant.
Regarding the system’s departure from the ParPlan, Dr. Thompson said, “Part of the reason we don’t accept it is because the rates are so low it’s not even that I can’t cover my costs, it’s that I lose so much money when I see those patients because of what we’re getting reimbursed.”
The contract between Covenant Health and Blue Cross Blue Shield ends July 31. If the two parties do not reach an agreement by that point, the hospital system will become out-of-network by Aug. 1.
Despite the uncertainty, Dr. Thompson and Covenant are urging patients to stick with the doctors they already receive care from.
“If you take nothing else away from this: stay with your doctor. We are going to stay at this table, we will figure this out, and we will take care of you in the interim,” Dr. Thompson said.
If negotiations fail, Blue Cross Blue Shield has a “continuity of care” program, which is considered when a member has extraordinary circumstances such as:
A high-risk pregnancy, or a pregnancy past the 13th week or beyond (for both PPO & HMO members)
Acute or disabling conditions
Life-threatening illness
According to Blue Cross Blue Shield, this coverage is only applicable to the requested doctor.
Covenant has provided a page for Frequently Asked Questions here: www.providence.org/news/uf/690746213?streamid=6734916
You can also call the system’s hotline at 806-725-6663 Monday-Friday from 8 a.m. to 5 p.m.
Blue Cross Blue Shield has also provided an information page: www.bcbstx.com/covenant
Covenant Health will still accept out-of-network patients.
Copyright 2025 KCBD. All rights reserved.
Blue Cross Blue Shield ‘unwilling’ to negotiate with Covenant Health: Thousands at risk of losing in-network coverage
Covenant Health is warning South Plains patients that they could soon lose in-network insurance coverage. The hospital system reports its negotiations with Blue Cross Blue Shield have resulted in a stalemate. This will impact individuals and families from 20 counties who seek care at Covenant Medical Group, Grace Clinic, and all Covenant hospitals. If the two parties do not reach an agreement by that point, the hospital system will become out-of-network by Aug. 1, 2025. The negotiations began in December 2024, when Covenant asked the insurance provider for adequate reimbursement that accounts for the rising cost of patient care. If negotiations fail, Blue Cross has a “continuity of care” program, which is considered extraordinary when a member has a high-risk pregnancy, or a disabling condition such as high- risk pregnancy or a life-threatening illness. The insurance provider says it is committed to reaching an agreement that appropriately balances the concern with affordability and access for our members. The contract between Covenant Health and BlueCross Blue Shield ends July 31.
The hospital system reports its negotiations with Blue Cross Blue Shield have resulted in a stalemate, with Blue Cross not responding to Covenant for nearly two weeks.
Covenant released this statement on Thursday:
Throughout these negotiations, Covenant’s goal has been to reach fair and equitable contract terms. Unfortunately, Blue Cross Blue Shield of Texas remains unwilling to offer adequate reimbursement for vital health care services. This will leave more than 140,000 individuals without in-network access to Covenant’s hospitals and providers in Texas after the contracts expire on July 31, 2025. This will impact individuals and families from 20 counties who seek care at Covenant Medical Group, Grace Clinic, and all Covenant hospitals.
The negotiations began in December 2024, when Covenant asked the insurance provider for adequate reimbursement that accounts for the rising cost of patient care.
“The number one question people are going to ask is ‘is Covenant being greedy,’” Dr. Amy Thompson, the Chief Executive of Covenant’s Lubbock service area, said on Thursday. “When we look nationally and across the state, we feel like [these rates] are fair reimbursement.”
Covenant is a not-for-profit health system. Dr. Thompson says this increased reimbursement rate would not go toward salaries but rather offset the costs of running system hospitals.
Covenant reports a 10% increase in staffing costs, 7% increase in pharmaceutical costs, and a nearly 15% increase in the cost of medical supplies since 2022.
“We care deeply about our neighbors and friends we serve who are covered by these contracts and want to ensure continuity of care. At the same time, adequate reimbursement is essential as inflation, global supply chain disruptions and the severe shortage of health care personnel have driven up the cost of caring for patients,” said Bruce White, Chief Executive Officer Rural Service Area.
These negotiations are not unusual between hospital systems and insurance providers. Covenant claims Blue Cross Blue Shield has participated in seven similar negotiations across the state this year.
It also conducted negotiations with Medical Center Hospital in Midland in 2023.
Blue Cross Blue Shield sent this statement to KCBD on Thursday:
We are currently negotiating new contracts with Covenant Health to protect our members’ access to quality care.
We understand the challenges and cost pressures hospitals are facing, and we are working to reach an agreement that protects the interests of our members and customers, who are facing similar pressures.
We value Covenant Health’s services and remain committed to reaching an agreement that appropriately balances the concern with affordability and access for our members.
If new agreements are not reached, Covenant Health hospitals, facilities, doctors and health care professionals will leave our Blue Choice PPO℠ and Blue Essentials℠ networks on Aug. 1, 2025. Covenant Health already made the decision to leave our ParPlan effective April 23, 2025. We hope they’ll reconsider.
Our members continue to have access to a network of other doctors, health care professionals, hospitals, and facilities throughout West Texas.
For the latest updates, visit bcbstx.com/covenant.
Regarding the system’s departure from the ParPlan, Dr. Thompson said, “Part of the reason we don’t accept it is because the rates are so low it’s not even that I can’t cover my costs, it’s that I lose so much money when I see those patients because of what we’re getting reimbursed.”
The contract between Covenant Health and Blue Cross Blue Shield ends July 31. If the two parties do not reach an agreement by that point, the hospital system will become out-of-network by Aug. 1.
Despite the uncertainty, Dr. Thompson and Covenant are urging patients to stick with the doctors they already receive care from.
“If you take nothing else away from this: stay with your doctor. We are going to stay at this table, we will figure this out, and we will take care of you in the interim,” Dr. Thompson said.
If negotiations fail, Blue Cross Blue Shield has a “continuity of care” program, which is considered when a member has extraordinary circumstances such as:
A high-risk pregnancy, or a pregnancy past the 13th week or beyond (for both PPO & HMO members)
Acute or disabling conditions
Life-threatening illness
According to Blue Cross Blue Shield, this coverage is only applicable to the requested doctor.
Covenant has provided a page for Frequently Asked Questions here: www.providence.org/news/uf/690746213?streamid=6734916
You can also call the system’s hotline at 806-725-6663 Monday-Friday from 8 a.m. to 5 p.m.
Blue Cross Blue Shield has also provided an information page: www.bcbstx.com/covenant
Covenant Health will still accept out-of-network patients.
Copyright 2025 KCBD. All rights reserved.