For the first time in 20 years the TRS ActiveCare government health plan hasn’t raised rates or reduced benefits to plan members. The Texas legislature has dumped hundreds of millions in additional funding cloaked as “Covid Relief” to keep the program solvent………….This has little to do with regional rating or anything else about controlling health care costs, which it doesn’t. More money-out with more money-in simply means more money…………… not less.
Regional rating doesn’t change overall funding. Some regions pay less while others pay more. Total aggregate funding remains the same. This is not a savings mechanism, it’s a sales mechanism……
“TRS-ActiveCare moved to regional rating to ensure prices reflect the cost of health care in your area. And now, in the 2022-23 plan year, none of the 20 Education Service Center regions will see a price increase from last year.” (2022-23 TRS-ActiveCare Rates Are Here)
“This is also in part due to additional federal COVID-19 funding from the Governor and Texas legislative leadership. Read TRS’ press release for more details:” April 28, 2022: TRS-ActiveCare Rates Stay Flat Thanks to Additional Funding (pdf).
“With these factors, the 2022-23 plan year is a reset for TRS-ActiveCare. We’ll continue to innovate in order to keep your prices competitive and your benefits robust and personal. Rising medical cost trends are an ongoing challenge. But we landed on an important starting point for our new regionally priced plans.”
“How can a commercial health plan compete with government health plan which has a guaranteed unlimited funding source standing by whenever they need a cash infusion? They can’t.”
