Another major Texas health system is leaving the Medicare Advantage insurance market as hospitals and health systems across the country retreat from certain private Medicare plans. Houston-based Memorial Hermann Health System is ending its Medicare Advantage plan at the end of 2026, meaning its coverage will no longer be available for the 2027 plan year. The move is part of a much larger shake-up in Medicare Advantage.
Ten health system-affiliated insurers already are among 18 plans exiting the Medicare Advantage market for 2027, according to Centers for Medicare & Medicaid Services (CMS) data. At the same time, some hospitals and health systems are remaining in Medicare Advantage but terminating their network agreements with individual insurers such as UnitedHealthcare, Humana, Aetna and Anthem. Becker's has tracked 35 health system contract breaks effective or announced in 2026 as of last week.
Medicare Advantage has grown to cover more than half of eligible Medicare beneficiaries, and health systems that operate or are affiliated with their own Medicare Advantage insurers have increasingly been pulling those plans from the individual market. In other cases, hospital systems are terminating contracts with outside Medicare Advantage insurance companies while continuing to accept other Medicare Advantage plans. That means many Medicare beneficiaries will see different plans and providers available to them in 2027.
Memorial Hermann Health Plan, affiliated with Houston-based Memorial Hermann Health System, offered Medicare Advantage coverage across six Texas counties in 2026 but is now exiting the market for 2027. However, it is not the only health system-affiliated insurer in Texas doing so. Irving-based CHRISTUS Health Plan is also leaving Medicare Advantage in 2027 after offering plans across 36 Texas counties and eight counties in New Mexico in 2026.
The decisions put the two Texas health systems among a larger group of healthcare organizations withdrawing their insurance offerings around the country. Running an insurance company on top of that is a different job.” According to CMS data, the following 10 health system-affiliated insurers are exiting Medicare Advantage for 2027. CHRISTUS Health PlanThe Irving, Texas-based organization offered plans in 36 Texas counties and eight New Mexico counties in 2026.
Braven HealthThe New Jersey joint venture involves Horizon Blue Cross Blue Shield of New Jersey, Hackensack Meridian Health and RWJBarnabas Health. Its plans were available in all 21 New Jersey counties in 2026. Saint Alphonsus Health PlanPart of Trinity Health, it offered Medicare Advantage plans in 10 Idaho counties in 2026.
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