Day: February 17, 2014

The TRS ActiveCare Board of Trustees voted last week to change administrators beginning with the 2014-2015 plan year. Blue Cross, the current administrator, will be replaced by Aetna. With the state employee health plan terminating their Blue Cross contract last year and going with United HealthCare, this is a second huge hit to the Blues in less than a year.

Are Blue Cross provider contracts inferior to United HealthCare or Aetna’s? Since 90% of costs are directly related to provider reimbursement levels, and since both the State of Texas employee benefit program and the TRS ActiveCare program employ independent actuaries to review plan finances with projections, one could surmise that it must be true Blue Cross’s provider contracts pay providers more than either of their competitors.

Or was Blue Cross terminated as a sacrificial lamb due to increasing medical costs?

We suspect Blue Cross will appeal the TRS Board of Trustee’s decision. It’s not over “til” it’s over.

Continue reading TRS ActiveCare To Change From Blue Cross To Aetna