An Antidote For The TRS ActiveCare Poison Pill Provision?

Want out of TRS ActiveCare immediately? There’s a provision in the Texas Administrative Code that can make that happen.

Senate Bill 1444 allows TRS ActiveCare member districts to exit the government health program only if they give written notice by December 31 of their intent to terminate membership to be effective nine months later.

This Poison Pill provision was intended to prevent districts from leaving. This is because a district will not be able to know nine months in advance what their cost basis will be.

Commercial health plans will not provide firm rates nine months in advance of an effective date because risk exposure can change over that period of time.  In addition, once a district provides written notice of termination they are prohibited from rejoining TRS ActiveCare for 60 months.

There is no superintendent on earth with job security in mind who will go out on a limb and recommend membership termination without the confidence of knowing what lies ahead nine months later. Their school board could possibly wind up making a decision to terminate the superintendent instead.

The Texas Administrative Code includes a provision that a district may use to their advantage:

“TRS will remove the entity from the program effective at the end of the month in which TRS discovers the situation; and it will be the entity’s liability to procure alternative coverage or provide other remedies for the employees and their dependents that lose coverage under these circumstances.”

It will take only one district to lead by example and if successful, will lead to more to follow. It takes a spark to start a revolution.

“The only thing a SOB understands is another SOB”

This is brilliant! No reason to NOT offer an alternative plan – TRS has lots of reasons to complain but not as much incentive to terminate. As long as the district has a plan for coverage in case of termination, they win either way! – L.B.