Most Texas School Districts Don’t Know This

Sec. 1501.009 of the TEXAS INSURANCE CODE stipulates an independent school district may elect to participate as a small employer without regard to the number of employees in the district.

This means no matter how big a school district is, they retain all the protections afforded to small groups including (1) Guarantee issue, (2) Base rates with limited underwriting adjustment factors filed with the Texas Department of Insurance, (3) Guaranteed renewable, (4) Cap on renewal rate increases.

Unless this has been modified by subsequent changes to the Texas Insurance Code, this means there is another competitive safe harbor for Texas school districts opting out of the TRS ActiveCare government health plan.