Killeen ISD To Save $10,000,000 By Joining Government Health Plan

At their September 2023 board meeting TRS ActiveCare officials approved transitional rates for the Killeen Independent School District (KISD). KISD is joining the TRS ActiveCare program effective January 1, 2024.

“We’re learning together” said Katrina Daniels a TRS ActiveCare administrator. “They were going to see from their provider significant increases” she continued.

Although transitional rates for KISD are 35% higher than TRS ActiveCare rates for their region, KISD is expected to save $10,000,000 by the move according to Ms. Daniels.

The TRS ActiveCare government health plan is a defined contribution plan. Districts are required to contribute a minimum of $150 per participating employee. The state contributes an additional $75. This minimum combined contribution of $225 represents 42% of the total employee cost for the cheapest plan option for KISD plan members and it represents 36% of the total employee cost for the most expensive plan option.

We suspect, although we don’t know, KISD is contributing more than the $150 minimum required contribution.

According to a recent report to TRS ActiveCare officials 2022-2023 employee contributions to the statewide TRS ActiveCare program amounted to 43% of the total funding while state and district contributions totaled 51%.

Meanwhile all other Texas state employees covered by the Texas ERS program pay nothing towards their health insurance plan. The state pays 100% of the employee only rate and 50% of the dependent rates. Many school district officials wonder why the same can’t be done for state employees involved with public education.

We suspect a majority of KISD members will select the cheapest plan option. The employee rate is $538 and family rate is $1,829 per month.

For more information watch TRS ActiveCare meeting here. (Start 12:08 End 18:47 – 6 minutes 39 seconds)