BlueCross BlueShield of Tennessee is winding down operations of its Shared Health subsidiary, which sells Medicare Advantage Dual Eligible Special Needs Plans (D-SNPs) in Mississippi and Texas, affecting approximately 5,500 members and 150 employees.
The company says it no longer sees a “sustainable path forward” for this line of business.
Here’s what you need to know.
What’s Happening
Shared Health will completely exit the Medicare Advantage market between September 2025 and early 2026. The subsidiary of BlueCross BlueShield of Tennessee serves approximately 5,500 members dually eligible for Medicare and Medicaid across Mississippi and Texas.
Coverage for current Shared Health members will end December 31, 2025. Members will need to select new coverage during Medicare’s Annual Enrollment Period (AEP), which runs from October 15th through December 7th.
According to company officials, approximately 5,500 Medicare Advantage plan members will be affected by this exit. The decision will also result in layoffs affecting approximately 150 employees who support Shared Health operations.
Why It Matters
Shared Health’s exit represents another blow to dual-eligible beneficiaries—individuals who qualify for both Medicare and Medicaid—who often have complex health needs and limited financial resources. The company joins a growing list of insurers exiting Medicare Advantage, including UnitedHealthcare, Humana, Sentara Health Plans, UCare, and FirstCarolinaCare.
BlueCross BlueShield of Tennessee stated: “This was a tough decision because it will affect around 150 talented, dedicated employees who support Shared Health—but we no longer see a sustainable path forward for this line of business.“
The decision reflects mounting pressures facing Medicare Advantage insurers, particularly those serving dual-eligible populations:
- Financial unsustainability in serving dual-eligible populations
- Complex coordination required between Medicare and Medicaid programs
- Rising healthcare costs for members with multiple chronic conditions
- Reduced government reimbursements that don’t keep pace with care costs
- Administrative challenges managing multi-state operations
Dual Eligible Special Needs Plans (D-SNPs) are designed to serve some of the most vulnerable Medicare beneficiaries—those who qualify for both Medicare and Medicaid due to limited income and resources, often with multiple chronic health conditions requiring significant care coordination.
What Are Medicare Advantage Plans?
Medicare Advantage (also called Medicare Part C) plans are an alternative to Original Medicare, offered by private insurers approved by Medicare. These plans often bundle:
- Hospital coverage (Part A)
- Medical coverage (Part B)
- Prescription drug coverage (Part D)
- Potential additional benefits such as dental, vision, or hearing
With Medicare Advantage, your coverage is administered by a private insurer rather than directly through the government. These companies receive payments from Medicare to provide your benefits.
It’s important to know that most Medicare Advantage plans operate with networks of doctors and hospitals, and some may require referrals to see specialists. However, they can offer lower monthly premiums and additional benefits that Original Medicare doesn’t include.
Medicare Advantage has grown significantly in popularity, with over 32 million beneficiaries enrolled in 2024, making up roughly 54% of all Medicare participants.
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