The month of May brings disturbing news to Mother. “Mom, I’ve spent more than my allowance allows. I owe the bookie at school and he wants his money now! I need another $637,500!” says the soon to be orphaned school superintendent.
A number of Texas public school districts react to TSHBP distress calls for more money to keep the TSHBP health program solvent. Tens of millions of dollars are needed to the tune of $1,500 per participating employee financed interest free at $150 pepm for ten months.
A rough calculation indicates the TSHBP Cash-Call-On-Demand equates to 48% rate increase. This is on top of last year’s TSHBP rate increase of 30% for the Aetna network plan and 15% on the Directed Care Plan.
Date : May 13, 2024
Subject: Consider/take possible action to approve unplanned additional contributions to Texas School Health Benefits Program
The District offers employee health insurance through the Texas School Health Benefit Program (TSHBP). On April 15, 2024, the District received correspondence from TSHBP regarding an important update on funding for the 2023-2024 plan year.
The TSHBP did not anticipate the significant increase in utilization that they are currently experiencing. As of April 1, 2024 for the 2023-2024 plan year, claims were forecasted at $63.7 million, with an additional $6.3 million budgeted for reserves, totaling $70.0 million. As of April 15, 2024, the TSHBP projections now show a total claim spend of $93.6 million, inclusive of run-out claims. In response to this situation, the TSHBP Board convened on April 9, 2024 and passed a resolution. In anticipation of the expected funding deficit for the 2023-2024 plan year, each TSHBP member school district will be required to make an additional contribution of $150 per month per participating employee starting May 1, 2024. It is anticipated that the additional funding will be needed for nine or ten months, based on current claim projections. TheTSHBP Board will evaluate monthly the claim payments and projections and make any necessary adjustments and inform member districts accordingly.
The District’s currently has 409 participating employees. The District is estimating the additional contribution of $150 per month per participating employee to be $63,750 per month, for the remainder of the 2023-2024 fiscal year totaling $255,000 of additional contributions to TSHBP. (NOTE – Total liability is $637,500 and is owed regardless if the district continues with the TSHBP program)
Mayday Public Meeting Agenda: May 13, 2024
May 20, 2024
The District’s limited aggregate protection health insurance plan through TSHBP (Texas Schools Health Benefits Program) has increased the required contribution per month for each of the current 438 covered employees, by $150 for the September 1, 2023, through August 31, 2024 plan year to address an expected funding deficit.
This contribution is required beginning May 1, 2024, and will continue for an estimated 9-10 months based on current claim projections from TSHBP. The plans offered by TSHBP are designed to be both affordable and comprehensive, but the company did not anticipate the significant increase in utilization that has been experienced by all participants.
Crosby ISD is currently the plan’s second highest district for insurance claims at 183.2% of contributions for the two-year combined loss ratio. This additional contribution is anticipated to cost $657,000 (438 employees x $150 per month x 10 months).
Mayday Public Meeting Agenda: May 20, 2024
Inside sources tell us TSHBP member school district superintendents, individually and under the demands of pissed off board members are to be required to pledge allegiance to the following diktats:
I, (Name of Superintendent) will:
- Never again question the wisdom nor discount the benevolence of the TRS ActiveCare Board of Trustees and Texas legislators and beg their forgiveness on bended knee,
- Never again trust nor enter into business with sleaze-bag insurance agents, brokers and consultants,
- Recommend rejoining TRS ActiveCare as soon as kind and caring TRS ActiveCare board members and their legislative allies allow,
- Never again do health insurance business with anyone other than Blue Cross, Cigna, United HealthCare or Aetna.
Under penalty of unemployment and in God I trust, I hereby pledge my life, liberty and bondage to the wishes of my Board of Trustees.
Signed: (Name of Superintendent)