Proposed Senate Bill 1444 was amended this afternoon to include provisions that would prevent Texas school district members of the TRS ActiveCare government health plan from offering competitive commercial health care alternatives for their employees.
Here is part of the language of the bill:
ALTERNATIVE GROUP HEALTH COVERAGE PROHIBITED. Notwithstanding any other law, a participating entity may not offer or make available to the entity ’s employees or their dependents group health coverage not provided under the program.
(TRS ActiveCare) PROGRAM PARTICIPATION: ELECTION. (a) Effective September 1, 2022, a participating entity may elect to discontinue the entity ’s participation in the program by providing written notice to the trustee not later than December 31st of the year preceding the first day of the plan year in which the election will be effective.
Our Interpretation:
STATE WILL TAKE AWAY COMMERCIAL HEALTH INSURANCE OPTION
If this bill passes as it now stands, 145 school districts which have implemented commercial health plan alternatives will be required to terminate those plans effective September 1, 2021.
POISON PILL
Any district that wishes to leave TRS ActiveCare effective September 1, 2022 must elect to terminate their participation nine months in advance. A district would be unwise to terminate nine months in advance without knowing what their alternatives are nine months later. There is not a carrier we know of that will bind coverage nine months in advance of coverage. This bill will kill a district’s ability to offer or seek to offer competitive health coverage in the commercial market.
