BCBS of Texas: Texas Health Resources seeks nearly $1B in rate increases

Arlington-based Texas Health Resources will no longer be in Blue Cross and Blue Shield of Texas' network if both parties don't reach a new agreement by a March 31, the insurer told Becker's Hospital Review.

"To continue to see our members, Texas Health is demanding nearly a billion dollars on top of what they are already paid. Texas Health's proposed rate increases would result in additional costs for our community and local businesses, without any guarantees of better health outcomes," Paul Hain, MD, north Texas market president at BCBSTX, told Becker's.  

THR and Texas Health Physicians Group would leave BCBSTX's network beginning April 1 if a new contract is not inked. Failed negotiations could leave BCBSTX policyholders at risk of paying more out of pocket for care provided by THR and its physicians.

Barclay Berdan, CEO of THR, told Becker's, "We're aware Blue Cross Blue Shield of Texas has begun communicating about our contract negotiations with them. How they position these negotiations is unfortunate, but not surprising. Our current contract does not end until March 31. We're optimistic that we can come to an agreement that is fair for our providers and allows us to continue providing quality care for our patients."

THR and BCBSTX have run into negotiation snags in recent years. In December 2016, THR's attempts to extend a contract with BCBSTX stalled over rate negotiations.

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