HB 3453 – Will TRS ActiveCare Survive? Floor Vote Wednesday….


We received an email this morning regarding the upcoming vote on HB 3453 which will allow TRS ActiveCare participating school districts to opt out of the program.

FYI – wanted to share with you what we are hearing…..

For those of you who are concerned about HB 3453 and want to discuss the issue with your Representative, here are some talking points.  The bill will be on the House floor for a vote on Wednesday!


HB 3453 by Rep. Lozano would authorize TRS to establish a regional rating method for determining the premiums charged to TRS-ActiveCare participants.  Additionally, the bill also allows public school districts to opt in and out of participation in the program.  The LBB finds that there will be no significant fiscal implication to the state, but in its analysis the LBB does say that regional ratings will result in these things:

1.      Some participants paying more than others for the same level of healthcare coverage.

2.      Regional ratings will increase the volatility of future employee premiums.

3.      Approximately 62% of participating employees could experience a premium rate increase as a result of regional ratings.

4.      As districts opt out of TRS-ActiveCare, the premium rates for those remaining in the plan will increase.

Additional facts about TRS-ActiveCare and HB 3453:

1.      Small and mid-size school districts will be harmed by this legislation.

2.      In anticipation of the bill’s passage, some school districts with fewer than 750 employees have posted Request for Proposals for health insurance with little or no response from insurance carriers.

3.      TRS-ActiveCare premiums have risen 238% since 2002, and the LBB predicts that most employees’ premiums will increase even more under this proposal.

4.      Approximately 60% of the TRS-ActiveCare participants work in school districts who will be unable to opt out of the program because of their small size, and their premiums will skyrocket because of the small pool of employees left in the program.

5.      Premiums will reach a point that school district employees will be forced to look on the exchange for health insurance.  School employees will be forced into ObamaCare because of HB 3453