CHRISTUS Health Will Exit Medicare Advantage in 2027
The insurer's withdrawal will force 9,000 members to seek new coverage for their 2027 benefits.
Updated on Oct. 2, 2026 in Healthcare
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CHRISTUS Health Plan will stop offering Medicare Advantage products across its 44-county footprint in Texas and New Mexico effective in 2027. The move impacts nearly 9,000 current members who must transition to new coverage during the upcoming enrollment window.
Why it matters
The exit highlights the difficulty hospital-owned insurance plans face when attempting to maintain the scale and efficiency required to compete with national carriers. This shift is part of a broader contraction, as 11 total carriers are exiting the individual Medicare Advantage market for 2027.
CHRISTUS Health Plan is exiting the Medicare Advantage market, affecting nearly 9,000 members across 36 Texas counties and 8 New Mexico counties. This is part of a wider industry contraction that includes 11 carriers leaving the individual Medicare Advantage market for 2027.
The players
CHRISTUS Health Plan
A provider-sponsored health insurer headquartered in Texarkana that offers Medicare Advantage and individual marketplace plans.
Centers for Medicare & Medicaid Services
The federal agency responsible for administering Medicare and tracking market participation data for health insurers.
The details
The non-renewal affects the Medicare Complete, Medicare Plus, and Medicare Guardian product lines. Impacted members are being notified via letters dated Oct. 2 and must navigate the annual enrollment period to secure new coverage. Those who do not actively select a new plan by year-end will be transitioned to Original Medicare effective Jan. 1, 2027, with the right to purchase Medigap policies.
Timeline
October 2, 2026: The insurer issued nonrenewal letters to affected members.
October 15, 2026 - December 7, 2026: Members can switch plans during the Medicare annual enrollment period.
January 1, 2027: Members who do not choose new plans will be moved to Original Medicare.
2027: CHRISTUS Health Plan formally completes its exit from the Medicare Advantage market.
Market Landscape
The withdrawal reflects the broader instability currently seen in the 2027 Medicare Advantage carrier market contraction. This trend marks a significant departure from previous years of growth, as providers find it increasingly difficult to match the benefits offered by national insurers.
Businesses operating in the healthcare space should monitor how carrier exits alter patient referral networks and regional competition. Operators and members should prepare for potential benefit adjustments as industry data indicates 70 percent of leaders expect less generous packages for 2027.
The takeaway
The exit of provider-owned plans underscores the competitive pressure that scale exerts on the Medicare Advantage market. Operators should monitor carrier participation in their specific counties to assess the stability of their local healthcare options for the coming year.
What happens next
Members should use the annual enrollment period from October 15, 2026, to December 7, 2026, to select alternative coverage or prepare for a transition to Original Medicare on January 1, 2027.
Further reading
For more on industry shifts, visit the Healthcare section.
Source note: This article includes information reported by InsuranceNewsNet.
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