QUESTION FOR THE BROKER: How can we secure a firm stop-loss rate for the next plan year? (ASO only)………Can we lock in our liability for the next plan year?
ANSWER: You can’t.
Senate Bill 1444 (SB1444) passed in the last Texas legislative session allows, for the first time in 20 years, member school districts to exit the government health plan. Notice of termination must be made no later than December 31 of any year for an effective date nine months later. This Poison Pill provision effectively places an exiting district in a bad position of not knowing what their cost will be nine months later because there is not an insurance company on the planet that will offer firm rates that far in advance of an effective date.
Below is an email sent out by TRS ActiveCare yesterday:
Thank you for attending TRS’ health care economic forum! We hope you found the presentations helpful for evaluating the health care needs of your district.
A recording of the forum will be available and sent to you soon. Until then, here are supporting resources you can access now:
Dr. Vivian Ho Presentation
Questions for Brokers (pdf)
Self-funding Guide (pdf)
Value of TRS-ActiveCare (pdf)