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:
By: Lozano H.B. No. 3453
A BILL TO BE ENTITLED
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
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 , 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
SECTION 4. Sections 1579.151 and 1579.153, Insurance Code,
SECTION 5. This Act takes effect September 1, 2015.