Texas physician group to drop UnitedHealthcare, 30,000 face coverage loss

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Lubbock-based Texas Tech University Health Sciences Center and Texas Tech Physicians have issued a notice of termination for the commercial and Medicare Advantage participation agreement with UnitedHealthcare, Everything Lubbock.com reported March 23. 

The termination date for the contract is March 31, 2026. If the group does not come to an agreement with UHC by the deadline, more than 30,000 patients will lose in-network access to more than 700 physicians across the region, according to the report. 

“Texas Tech Physicians opened discussions with UnitedHealthcare in early 2025 for the Amarillo, Lubbock and Permian Basin campuses as the rates within these agreements have not been updated in 13 years,” said Martin Clay, TTP’s executive director, in the report. “The decision to terminate is primarily due to disagreements over reimbursement rates amid the rising cost of patient care. Health care costs have risen significantly in the last 13 years while TTP’s reimbursement rates with UHC have remained constant.”

He affirmed that physicians with TTP would continue to provide care, even if out-of-network. 

“However, patients may face higher out-of-pocket costs for medical services received after the termination date,” he added. 

A UnitedHealthcare spokesperson told Becker’s in a shared statement that the physicians’ request is “unsustainable” and would increase healthcare costs for patients and employers.

“Our top priority is to reach an agreement that is affordable while providing continued, uninterrupted network access to the provider group,” the spokesperson said. “We are proposing rate increases that would continue to reimburse Texas Tech at market-competitive rates. We remain committed to continued good-faith negotiation but need Texas Tech to provide a proposal that’s affordable for West Texas families and employers.”

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