Baylor Scott & White’s insurance arm is pulling out of two major lines of business, and hundreds of thousands of Texans are about to feel the ripple. The health plan said yesterday it will stop offering Medicaid managed care and individual ACA marketplace coverage next year, a move that will leave roughly 225,000 people shopping for new insurance and put 321 jobs at risk. The change is limited to the insurer side of the Dallas-based system, and officials emphasize that Baylor Scott & White hospitals and clinics will continue to accept Medicaid and marketplace plans issued by other carriers. Regulators still need to approve the withdrawal, and members will be contacted if the plan gets a green light.
Timeline and who is affected
According to The Dallas Morning News, Baylor Scott & White Health Plan intends to leave the Texas Medicaid Managed Care Program on Aug. 31 and to discontinue its individual marketplace plans by Dec. 31, pending regulatory approval. The outlet reports the insurer currently covers about 125,000 people through Medicaid plans and roughly 100,000 who buy coverage on the ACA exchanges, for a total of about 225,000 members who will eventually need new policies.
Why the insurer says it is leaving
Baylor Scott & White Health Plan says the exit reflects the state’s Medicaid procurement decision and Individual Marketplace complexities. In a notice to members, the company also points to the scheduled end of enhanced federal premium tax credits, a shift it says will make marketplace pricing and participation tougher. The plan’s site says its individual products, both on and off the Marketplace, are set to end Dec. 31, if regulators approve the filing, and that the company will reach out directly to affected members after that review.
Jobs and employee support
The health system says 321 positions will be impacted across Texas, including about 65 roles in North Texas. KWTX reports the insurer has told employees it plans to offer career guidance, priority access to internal job openings, funded reskilling into high-demand clinical roles and extended medical benefits for those whose jobs are affected.
What members should do next
Baylor Scott & White Health Plan says it will contact impacted members if regulators approve the withdrawal and will provide enrollment assistance to help them move to other coverage. People who lose these plans will generally need to choose a new insurer during open enrollment, or they may qualify for a special-enrollment period. For federal Marketplace information and local enrollment help, members can visit HealthCare.gov.
Broader context
Analysts say the retreat fits into a broader national pattern, as insurers reassess their appetite for risk in the individual market now that the enhanced premium tax credits introduced during the pandemic expired at the end of 2025. The Kaiser Family Foundation has warned that losing those boosted credits will push average Marketplace premiums higher in 2026, which can make it harder for some insurers to stay profitable in the individual market.
Where the plan is headed
KWTX notes that the insurer says it will refocus on employer group coverage and Medicare Advantage products instead, while the larger Baylor Scott & White Health network will continue to accept Medicaid and Marketplace plans offered by other insurers. The next few months will be crucial for members and staff alike as regulators weigh the filing and the company starts outreach and transition planning.
