Blue Cross Blue Shield of Texas will stop offering all Medicare Advantage and Medicare prescription drug plans starting Jan. 1, 2027, leaving seniors across the state, including Woodlands-area residents, searching for new coverage during an open enrollment window that closes Dec. 7.
The insurer posted a notice on its website confirming it will drop Blue Cross Medicare Advantage Plans, Blue Cross MedicareRx Prescription Drug Plans and Blue Cross Medicare Advantage Dual Care Plus HMO Special Needs Plans for the 2027 plan year, Fox 26 Houston reported.
BCBSTX said affected customers received notification letters before Oct. 2 explaining their options. Those customers have a special election period to choose another plan.
"Like all carriers, Blue Cross and Blue Shield of Texas evaluates its Medicare products annually by market to determine their ongoing viability … In some cases, we need to make adjustments," the company said in a statement.
A broader pullback
The exit is part of a national retreat from Medicare Advantage. According to The Dallas Morning News, a KFF analysis found 2.6 million seniors had their Medicare Advantage plans terminated at the start of 2026. UnitedHealthcare, Humana and Molina have also reduced their offerings, the newspaper reported. The rising cost of providing care, outpacing increases in federal payments, has squeezed insurer margins, the KFF analysis said.
BCBSTX is owned by Health Care Service Corp., which also offers Medicare Advantage through another brand, HealthSpring, after acquiring Cigna's Medicare Advantage portfolio in a 2025 deal. Enrollees in BCBSTX MedicareRx plans will be moved automatically to a HealthSpring plan, the Dallas Morning News reported. HealthSpring plans are available in only 47 Texas counties, compared with the 227 counties where BCBSTX sold plans, according to the newspaper. Whether HealthSpring covers Montgomery County is not clear from available records.
AARP Executive Vice President Nancy LeaMond said in a statement that "higher healthcare costs are making it harder for older Americans to afford the care they need," according to ABC News.
Options for affected residents
Medicare's annual open enrollment runs from Oct. 15 through Dec. 7. Coverage changes made during that window take effect Jan. 1, 2027.
Affected members have two main paths, according to the Dallas Morning News. They can pick a different Medicare Advantage plan from another insurer. Or they can switch to traditional Medicare. Seniors who make that switch and want supplemental coverage may qualify for a guaranteed-issue Medigap enrollment window, meaning insurers cannot deny them or charge more based on health conditions, as outlined in their non-renewal notice.
Returning to traditional Medicare also requires a separate Part D prescription drug plan. The annual out-of-pocket cap for Part D will rise to $2,400 in 2027, up from $2,100 in 2026, and the standard deductible will increase from $615 to $700, ABC News reported.
Residents who need help can contact Medicare, speak with a licensed insurance agent or seek assistance from a local health care navigator, according to Fox 26 Houston. Open enrollment closes Dec. 7.
