LUBOK, Texas

Covenant Health is currently in discussions with Texas Blue Cross Blue Shield regarding a new agreement that commenced in December 2024.

On Thursday, Covenant Health released a statement about these ongoing negotiations, noting that the existing contract is set to expire on July 31, 2025.

Covenant expressed concern that the insurance provider has not made satisfactory progress in reaching agreeable terms. This situation could impact over 140,000 patients who may find themselves without access to Covenant hospitals and healthcare services across Texas.

“We genuinely care about our community members covered by these contracts and wish to ensure they maintain continuity of care,” Covenant shared. “However, it’s crucial that reimbursement reflects current realities, as inflation, global supply chain issues, and a significant shortage of healthcare workers have raised costs for patients.”

Texas Blue Cross Blue Shield is recognized as the largest health insurance provider in the state. Covenant Health emphasized the need for insurers to be part of the solution.

Beginning August 1, 2025, Covenant will no longer be considered part of the Blue Cross Blue Shield network for its members. Covenant hopes that this period of disconnect will be brief.

KCBD reached out to Texas Blue Cross Blue Shield and received a statement indicating:

“We are in negotiations with Covenant Health to ensure our members have access to quality care.”

“We recognize the financial pressures hospitals are facing and are striving to reach a resolution that protects our members and customers.”

“We appreciate the services provided by Covenant Health and are dedicated to reaching an agreement that balances affordability for our members with access to care.”

“If an agreement isn’t met, contracted hospitals, facilities, physicians, and medical professionals will exit the Blue ChoicePPO℠ and Blue Essentials℠ network on August 1, 2025. Furthermore, Covenant Health has decided to withdraw from Paran on April 23, 2025.”

“Our members will still have access to other healthcare providers in West Texas.”

During this transition, contracted physicians will continue to manage prescription refills and address patient inquiries.

The current contract does allow for a broad network of most commercial insurance plans.

For more information, contracting teams are available from 8 a.m. to 5 p.m., Monday through Friday, at (806) 725-6663.