The health plan of Texas-based Baylor Scott & White will exit the individual marketplaces as well as Medicaid, the health system announced this week.
Per a statement posted to its website, BSW said that it notified regulators that it plans to exit the Affordable Care Act's exchanges on Dec. 31. The health system said this will not result in any immediate changes for people enrolled in these plans, and that it will reach out to impacted members in the near future with further details.
Baylor Scott & White said on its site that it will continue to accept individual market coverage.
In an announcement given to press, the health system also said it will exit the Texas Medicaid program on Aug. 31. BSW said it will continue to accept Medicaid coverage.
The health system said in the announcement that it covers about 3.5% of Medicaid enrollees in the Lone Star State as well as bout 2.9% of individual market members. This equates to about 125,000 lives in Medicaid and 100,000 marketplace enrollees, according to the Dallas Morning News, which first reported on BSW's plans.
"This change reflects the state’s Medicaid procurement decision and Individual Marketplace complexities," BSW said in a statement to Fierce Healthcare.
The changes will impact 321 jobs, the health system said. BSW said it will focus on supporting the affected individuals through the transition, including career guidance, priority opportunities elsewhere within the system, and funded upskilling for in-demand clinical roles.
Baylor Scott & White is continuing to actively hire, according to the announcement, and has added more than 2,600 positions across its service areas in the past year.
"Across Baylor Scott & White, the need for clinical talent continues to grow," the system said. "We are further investing in direct patient care roles and creating new pathways for team members who want to build skills, pursue new opportunities and continue serving our customers and patients in different ways."
Insurers with significant footprints in Medicaid have sounded the alarm about escalating costs in this market, which aligns with broader trends to rising healthcare expenses across the board. Medicaid is also set for a massive overhaul that takes effect at the beginning of next year, as work requirements roll out nationwide on Jan. 1.
The individual market, too, has seen increasing instability over the past year. Enrollment declines driven by the expiry of enhanced premium tax credits that drove massive gains have dinged insurers in this market, alongside significant program integrity measures and similarly escalating costs.