Blue Cross and Blue Shield of Texas will sever ties with Houston-based Kelsey-Seybold Clinic, putting approximately 100,000 patients out of network with the providers' physicians, the Houston Chronicle reported.
Effective Oct. 1, 470 physicians at 20 Kelsey-Seybold locations will no longer be in-network with the Richardson-based insurer. Patients on the eight affected employee-sponsored plans – including PPO, point-of-service and federal employee plans – who wish to continue care with their physicians will face higher costs. The change does not affect HMO and individual plans.
BCBSTX sent a termination letter to Kelsey-Seybold on July 1 regarding the Oct. 1 end date. Kelsey-Seybold asked for an extension, but was not granted its request, a clinic spokesperson told the Houston Chronicle. Employers providing the affected policies were notified last week and patients have been notified the past couple of days.
In an emailed statement to the Houston Chronicle, Kelsey-Seybold and BCBSTX expressed disappointment about the failed negotiations and resulting decision.
Kelsey-Seybold will provide affected patients 40 percent discounts through December 2017.
Editor's note: This article was updated at 3:38 p.m. CT to reflect that patients will receive discounts through December 2017, not December of this year. We regret this error.
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