TRS ActiveCare trustees were given updated financials at their September 2024 quarterly board meeting with financial projections through 2027.
Highlights Include:
- Projected 2025 rate renewal assumes a 9% increase.
- Supplemental state funding of +$1 billion has kept the program solvent.
Member districts of the TRS ActiveCare government health plan can opt out September 2025 if they provide written notification no later than December 31, 2024. Those districts have less than 90 days from now to make that decision.
The TSHBP disaster is still fresh on everyone’s mind. As one can imagine any mention of exiting TRS ActiveCare to join a self-funded risk pool is a hard sell these days. To many districts, remaining with TRS ActiveCare is their safest bet, a safe harbor of politically placid waters, a safe guarantee for continued employment.
The question for districts remaining with TRS ActiveCare is will the state come through again with additional supplement funding.
Throwing more money at a failing system is only kicking the can down the road. Yet that’s the “solution” tried year after year in both the private and public sector to no avail.
There is an alternative more districts are considering that makes a case for leaving TRS ActiveCare an attractive option. Despite brokerage resistance we expect ICHRAs will gain traction in the Texas public school market in 2025.
