Will H.B. No. 3453 Destroy TRS ActiveCare?

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Texas state representative J. M. Lozano filed House Bill (3453) on March 12, 2015. If passed the bill will take effect on September 1, 2015 and will allow participating school districts to leave TRS ActiveCare.

School districts currently participating in the TRS ActiveCare program are prohibited from leaving.

If districts are allowed to come and go as they please, adverse selection will begin an irreversible death spiral – TRS ActiveCare could end up being an insurer of last resort.

Should HB 3453 become law many expect a strong “run on the bank.” Will El Paso Independent School District be the first to leave? See El Paso ISD Votes To Leave TRS ActiveCare


See H.B. 3453 below:

84R12056 AJA-D

By: Lozano         H.B. No. 3453

A BILL TO BE ENTITLED

AN ACT

relating to participation in and rates for coverage provided under

the uniform group coverage program for active employees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1.  Subchapter B, Chapter 1579, Insurance Code, is

amended by adding Section 1579.056 to read as follows:

Sec. 1579.056.  REGIONAL RATING AUTHORIZED.

Notwithstanding any other provision of this chapter, the trustee by

rule may establish a regional rating method for determining

premiums charged in different regions of the state for the benefits

provided under a plan of group coverage established under the

program.

SECTION 2.  Section 1579.152, Insurance Code, is amended to

read as follows:

Sec. 1579.152.  PARTICIPATION OF [OTHER] SCHOOL DISTRICTS

AND CERTAIN RISK POOLS. Effective September 1, 2015 [2005], a

school district or a risk pool established under Chapter 172, Local

Government Code, as provided by Section 22.004, Education Code,

that is in existence on January 1, 2015, and whose members are

school districts [with more than 500 employees] may elect to

participate in the program. A school district or risk pool that

elects to participate under this section shall apply for

participation in the manner prescribed by the trustee by rule.

SECTION 3.  Subchapter D, Chapter 1579, Insurance Code, is

amended by adding Section 1579.155 to read as follows:

Sec. 1579.155.  ELECTION NOT TO PARTICIPATE. A school

district or risk pool may elect not to participate in the program,

notwithstanding any previous election or requirement to

participate.

SECTION 4.  Sections 1579.151 and 1579.153, Insurance Code,

are repealed.

SECTION 5.  This Act takes effect September 1, 2015.

See: TSTA Recommends TRS ActiveCare Opt Out Provision

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