Last week, someone I know brought me a piece of mail. It was a notice from Baylor Scott & White Health Plan stating that they will no longer offer ObamaCare plans starting next year.

The person was confused about whether they needed to change hospitals or if their insurance would just be canceled. Since I don't think many people who received a similar letter are based in Texas, I will clarify this issue step by step today.

First, let's look at the facts. Baylor Scott & White Health Plan announced that it will discontinue individual and family Marketplace plans effective December 31, 2026.

The announcement was made in mid-April this year, and the company stated that it has notified state regulators of this plan. In the same announcement, they mentioned that they would also exit Texas Medicaid managed care as of August 31.

According to the company's disclosure, this plan covered 2.6% of Texas Marketplace enrollees. While that number may seem small, in the area where this hospital group is based, there are likely one or two enrollees nearby.

The reasons given were the results of the state government's Medicaid contract selection and "Individual Marketplace complexities." In simple terms, it suggests that the individual insurance market was not financially viable for the company.

Here, many people misunderstand something. It is the insurance company (Health Plan) that is exiting, not the hospital (Baylor Scott & White Health).

According to the company's FAQ, Baylor Scott & White hospitals and clinics will continue to accept other Marketplace plans. This means you do not necessarily have to leave your current primary care physician.

However, you need to check whether the new plan includes that hospital as in-network. I believe this is the key point of this situation.

Also, nothing will change until December 31 of this year. The company has stated that coverage details, benefits, and services will remain the same until then.

So, when and what should you do? The 2027 plan open enrollment starts on November 1, and since Texas uses HealthCare.gov, you can select a new plan there.

To maintain uninterrupted coverage starting January 1, you must complete your enrollment by December 15. Please mark this date clearly on your calendar.

The registration period for HealthCare.gov is set to end on January 15, 2027. Originally, federal regulations were going to shorten this period, but in June, a federal court in Maryland invalidated that provision, and CMS confirmed that the existing schedule would be maintained.

However, if you enroll after December 16, your coverage will start on February 1, resulting in a one-month gap.

What happens if you do nothing? The Marketplace automatically assigns enrollees whose plans are discontinued to similar plans from other insurers, a process known as crosswalk.

The criteria are the same metal level, the same product type, and the most similar network. They will place you in the plan with the lower premium, which means your doctor or medications might not be covered.

Honestly, this part is the most concerning. I can easily picture our Korean seniors, who may struggle to read the English notice carefully, being confused at the pharmacy in January.

So, let me outline the steps for you. First, write down the names of your current doctors and hospitals, along with a list of your medications.

Second, after November 1, log in to HealthCare.gov to compare plans and check if your doctor is in-network and if your medications are on the formulary.

Third, don't just look at the premiums; also consider the deductible and out-of-pocket maximum. Even if the monthly premium is low, there are often plans that cost more when you actually go to the hospital.

Fourth, choose your preferred plan before December 15. The most reliable method is not to wait for automatic assignment.

If you are currently undergoing treatment or regularly taking prescription medications, I recommend discussing with your doctor or pharmacist how to continue your medications or treatments when switching insurance. Each insurer has procedures to assist during the transition, so be sure to ask your new insurer as well.

For reference, Baylor Scott & White Health Plan is not the only company exiting the Texas individual market this time. Cigna has also announced that it will withdraw from the Texas individual health insurance market by the end of 2026.

Having fewer options ultimately means less competition, which is concerning. Even if we acknowledge market principles, I believe there needs to be some adjustments to the structure that forces enrollees to move around every year.

If comparing in English feels overwhelming, don't hesitate to seek help. You can find free Navigator assistance through HealthCare.gov, and you can request interpretation services by calling the Marketplace call center.

Current Baylor Scott & White Health Plan enrollees can call the number on the back of their card or the company's information line at 855-572-7238 to inquire about their situation. Be sure to double-check the termination date mentioned in the letter.

If I received that letter, I would start comparing plans right away in the first week of November. If the site gets crowded in mid-December, it will be harder to connect with an advisor.

The saying that you should take care of insurance when you are healthy, not when you are sick, feels more real than ever right now. If you know someone who received this letter, please let them know.