Blue Cross Blue Shield patients will be covered again at Memorial Hermann after agreement reached

HOUSTON, Texas (KTRK) -- Nearly 200,000 Memorial Hermann Hospital patients can take a deep breath after the hospital system announced on Friday that it has reached a deal with Blue Cross Blue Shield of Texas.

Memorial Hermann's contract with the state's largest insurer expired at the start of the month after a disagreement over contracting out the hospital's physician's network.

Both organizations announced they no longer had a contract, meaning patients would have to pay out-of-network costs.

After ongoing negotiations, a four-year deal was made, and Blue Cross Blue Shield patients at Memorial Hermann should not experience any further disruption in their care, effective immediately.

"Through determined efforts on both sides, Blue Cross and Blue Shield of Texas has reached an agreement with the Memorial Hermann Health System and its physicians," the insurance provider said in a statement. "The new four-year agreement allows BCBSTX members continued access to Memorial Hermann hospitals throughout the Houston region while expanding future access to Memorial Hermann providers for our Blue Advantage HMO members."

PREVIOUS STORY: Memorial Hermann services no longer covered by Blue Cross Blue Shield insurance

Memorial Hermann issued the following statement:

"Memorial Hermann has reached an agreement to continue our relationship with BlueCross BlueShield of Texas (BCBSTX), maintaining the integrity of both our health system and our clinically integrated physician network (MHMD), so we can continue serving our patients with exceptional, high-quality, affordable health care.

This means that in-network access to Memorial Hermann's hospitals, facilities and affiliated providers is restored for our patients with BCBSTX commercial PPO/POS, EPO, Blue Essentials HMO, and Medicare Advantage HMO/PPO health plans, and they will not experience any further disruption in their care, effective immediately.

As the state's largest health insurer, BCBSTX's commitment to the sustainability of our health system, our physician network, and our Accountable Care Organization is integral to the health and wellbeing of the many communities we have proudly served for more than a century. It is our distinct honor and privilege to continue delivering these services as in-network providers, for all those who need us, for many more years to come."

BCBSTX issued the following statement:

"Through determined efforts on both sides, Blue Cross and Blue Shield of Texas has reached an agreement with the Memorial Hermann Health System and its physicians.

The new four-year agreement allows BCBSTX members continued access to Memorial Hermann hospitals throughout the Houston region while expanding future access to Memorial Hermann providers for our Blue Advantage HMO members.

Our goal with this and every negotiation is to help contain rising healthcare costs for our members.

We have great respect for Memorial Hermann. The health system has an important and vital role in delivering care to our members and patients. We are happy to continue our longstanding relationship with the health system."

PREVIOUS REPORT: Memorial Hermann and BlueCross BlueShield of Texas fail to reach agreement