MomDoc Announces End of Contract with Blue Cross Blue Shield of Arizona

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PHOENIX, Ariz. — October 29, 2025 — MomDoc, Arizona’s leading women’s healthcare provider with 17 locations throughout the state, announced today that effective December 1, 2025, it will no longer be contracted with Blue Cross Blue Shield of Arizona (BCBSAZ).  

 

This decision follows over two years of attempting to engage in meaningful discussions with BCBSAZ to secure fair and sustainable reimbursement rates that reflect the rising costs of delivering quality healthcare.

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Why would MomDoc, Arizona’s most available and accessible OB/GYN group, drop BCBSAZ from the network?

“Arizona has 15.3% fewer doctors delivering babies than 10 years ago,” said Nick Goodman, CEO of MomDoc. “MomDoc needs to continue partnering with plans that compensate properly so we can recruit high-quality OB doctors to the state. Medicaid/AHCCCS pays better than most Arizona commercial plans, which is backwards from most states. Usually, commercial plans like BCBS reimburse 20% higher than Medicaid to help subsidize the government payor. No longer can MomDoc afford to subsidize underpaying commercial plans.”

 

Arizona faces one of the most critical physician shortages in the nation, particularly in women’s health. Physician compensation in Arizona lags behind many states, making recruitment and retention increasingly difficult.  Adding to the challenge, both for-profit and not-for-profit insurance companies have reported record profits, yet provider reimbursement rates have failed to keep pace with inflation.

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Why is Arizona experiencing an OB doctor shortage?

“There are many factors contributing to this,” said Goodman. “These include shorter careers, more work/life balance for doctors, retirements, and not enough physicians being trained. Those are the national issues. What’s different for Arizona is that health plans have long benefited from low rate schedules based on the historically low cost of living and working in Arizona; often 20% less than the national average. Arizona is no longer a low-cost state to live or work in, yet commercial health plans continue to compensate OB doctors as if it was. As a result, physicians are leaving for states where they are paid more, have lower patient volumes, and receive more time off.”

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Our Commitment to Patients

MomDoc remains steadfast in its commitment to ensuring continuity of care for all patients. Those currently insured through BCBSAZ will continue to have full access to their medical records and assistance in transitioning care, as required by regulation.

“Our patients are at the heart of every decision we make,” said Goodman. “We will continue to advocate for fair compensation that protects access to high-quality women’s healthcare in Arizona.”