Blue Cross has given a small school district in deep South Texas a better deal than TRS ActiveCare with over 400,000 members……………….
Small District Proves Bigger Is Not Always Better Than Smaller
This 664 life itty-bitty school district has found a better Blue Cross plan than what they had with membership in the 400,000 member TRS ActiveCare Blue Cross plan proving BIGGER IS BETTER is not always the case.
The TRS ActiveCare sales pitch has consistently been “BIGGER is always better.” They claim the power of large numbers gives them a competitive advantage as they can get much better deals than a small district can achieve on their own.
That may ring true in most business purchasing but in this case it doesn’t. A five life plumbing company gets the same Blue Cross network and PPO “discounts” as a 400,000 life monster group. Cost of claims drives cost of insurance. Smaller Blue Cross groups get the same pricing as larger groups proving size doesn’t matter.
Since Senate Bill 1444 passed in the last Texas legislative session allowing TRS ActiveCare member districts the option of leaving the program for the first time in 20 years, the run on the bank has begun.
News like this travels fast among Texas school districts.
“Blue Cross is having their cake and eat it too. They have claim information on districts exiting TRS ActiveCare which puts them at a competitive advantage. They enjoy House Odds hedged by betting on Red & Black……….The House always wins………………”