$64,000 Question
House Bill 3987, if passed, will direct a commission to study alternative mechanisms for offering health benefit plan coverage to the affected employees of the TRS ActiveCare program and their dependents. Will “alternative mechanisms” include a study of Reference Based Pricing strategies? Will Texas follow the lead of Montana, North Carolina and the South Texas Health Cooperative?
The South Texas Health Cooperative is a risk pool of participating school districts that has moved from the world of managed care to Reference Based Pricing more than seven years ago with good success. The pool has enjoyed static rates since the move to reference based pricing, while improving benefits at the same time.
Meanwhile, back at the ranch, member districts of the TRS ActiveCare program with +400,000 members continues to experience annual cost increases, less choice, and benefit erosion……………..
We noticed the commission members will not include anyone from the medical community. The commission is to report it’s findings in January 2021.
By: Leach H.B. No. 3987
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a study of TRS – ActiveCare administered
by the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. COMMITTEE. (a) A committee is created to study
and review TRS – ActiveCare , administered under Chapter 1579,
Insurance Code, and propose reforms to address issues described by
Section 2 of this Act.
(b) The committee is composed of the following members:
(1) two persons appointed by the governor;
(2) two persons appointed by the lieutenant governor;
(3) two persons appointed by the speaker of the house
of representatives; and
(4) two persons employed by the Teacher Retirement
System of Texas and appointed by the board of trustees of the
system.
SECTION 2. STUDY REGARDING CERTAIN HEALTH BENEFIT PLANS.
The committee created by Section 1 of this Act shall study
TRS – ActiveCare to examine and assess the following issues:
(1) the financial soundness of the plans offered under
TRS – ActiveCare ;
(2) the cost and affordability of plan coverage to
persons eligible for coverage under the plans;
(3) the sufficiency of access to physicians and health
care providers under the plans; and
(4) alternative mechanisms for offering health
benefit plan coverage to the affected employees and the affected
employees’ dependents.
SECTION 3. COMMITTEE FINDINGS AND RECOMMENDATIONS. (a)
Not later than January 15, 2021, the committee appointed under this
Act shall report the committee’s findings and recommendations to
the lieutenant governor, the speaker of the house of
representatives, and the governor. The committee shall include in
its recommendations specific statutory and regulatory changes that
appear beneficial from the results of the committee’s study under
Section 2 of this Act.
(b) Not later than the 60th day after the effective date of
this Act, the governor, lieutenant governor, speaker of the house
of representatives, and board of trustees of the Teacher Retirement
System of Texas shall appoint the members of the committee created
under Section 1 of this Act in accordance with that section.
SECTION 4. ABOLITION OF COMMITTEE. The committee created
by this Act is abolished and this Act expires January 20, 2021.
SECTION 5. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2019.