“Merry Christmas TRS ActiveCare, there’s a $20,000,000 lump of coal in your stocking” – The Amarillo Independent School District.
Their Christmas spirit knows no bounds. Amarillo ISD To Gift TRS ActiveCare A $20,000,000 Black Coal Deficit.
Amarillo ISD’s risk management strategy for 2026 makes sense for a lot of reasons. It gets the district out of the health insurance business, something they suck at. It transfers all risk and most ACA legal labilities. It limits district cost through a guaranteed defined contribution plan with artificially low subsidized rates backed by the state legislature standing by with unlimited funds at the ready if Segal’s claim projections go south.
“We are losing our ass!!” said Mary Monahan in the business office. “Let’s terminate our bankrupt, deficit plagued self-funded plan and stuff the TRS Christmas stocking with our $20,000,000 Black Coal deficit!”
“Great idea. Let’s send Santa our Christmas Wish List!” said Salley Secretary.
Santa’s Adverse Selection Elves To The Rescue!
“Rejoice! We are the Adverse Selection Elves and we’re here to help you. Give us your poor, your tired, your huddled masses and we will finance all their covered health care needs for $20,000,000 less than what you are funding now.”
Reporting from Amarillo while on her annual sabbatical Molly Mulebriar reports the deciding factor in the district’s decision to change insurance providers was driven by lower insurance costs with first year savings of $20,000,000. Cost of care was not a consideration.
USI, the district’s consultant, in tacit admission of their failure to manage health care costs for the district, projects current year-end deficits will be $20,000,000.
“If funding for the current year is expected to produce a $20,000,000 deficit and the TRS ActiveCare premiums for the new plan year are $20,000,000 less than current district contributions which are producing that deficit, does that mean TRS ActiveCare will likely end up after year one with as much as a $40,000,000 deficit? Or does it matter?” asked Jimmy Young, a math teacher at Amarillo High School.
“It doesn’t matter Jimmy” said James Olson, history teacher at Olson Elementary School. “TRS will take that into account, something USI may have overlooked. A special rate load may be applied like what was done when Killeen ISD joined TRS. They got a 35% premium load as punishment for poor plan management. And the Texas legislature has a history of bailing out the bankrupt government program in years past. Amarillo ISD is not the first large district visited by Santa’s little Adverse Selection Elves. Killeen ISD saved $10,000,000 last year by joining TRS ActiveCare. The Brownsville Independent School District, the largest employer south of San Antonio, is exploring TRS ActiveCare as a means to stem continued deficit spending plaguing the district.”
“The magnet for these districts are artificially low TRS rates. Without supplemental funding by the state rates would have increased +30% each of the past two years. The problem now facing Amarillo ISD is they won’t know what their TRS rates will be until a few months before their coverage begins and worse, they can’t change their mind if buyer remorse sets in. Even worse than that they will be prohibited from seeking competitive alternatives on the commercial market for five years“ replied Jimmy, the now depressed math teacher.
“None of this matters. Government health plans have never been known to go broke. Plus this move gets the district out of the health insurance business and that’s worth a lot!” said James the history teacher hyperventilating with deep emotion.
(Watch Santa’s Adverse Selection Coal Bearing Elfe stuff the AISD Christmas stocking HERE starting as 1:30)
Amarillo ISD school board votes for new school calendar, insurance plan
