TRS ActiveCare Under Massive Attack

Will TRS ActiveCare survive massive assaults by hordes of commercial invaders who believe victory is a given? Battle plans incorporate common sense, reason and logic geared to winning in time for the TRS ActiveCare Armistice Day deadline set for December 2021…..

We are hearing more districts will be offering commercial health plan alternatives September 2021, further eroding TRS ActiveCare membership.

Last year 145 districts offered employees commercial alternatives. We suspect that number will increase dramatically this year.

FBS, First Financial and their TPA partners appear to be the leaders active in assisting these districts.

In the Houston area we know of three large districts that will be offering commercial alternatives September 2021 covering +10,000 employee lives. One is using the Aetna network and the other two will use Cigna.

Now we hear an unconfirmed rumor another Texas based TPA has picked up 25 districts with a combined 5,000 employee lives as the endorsed TPA for TEEBC .

It appears TRS ActiveCare membership is eroding faster than a melting raspa on a hot August day in Deep South Texas.

More TPA’s, carriers, brokers and consultants see this as a once-in-a-lifetime opportunity to pick up some easy business. They should be cautious about what they hope for since school districts are a completely different culture than commercial accounts. School district business has historically been high maintenance and subject to changing political winds with every election. This is a risk factor that must be priced accordingly.

Armistice Day is December 31, 2021. That’s the final day TRS ActiveCare member districts must decide whether to stay or exit the program effective September 2022. If they leave they can’t rejoin until 2027.

Their choices are:

1. Lock in to only one option for five years with no local control over benefits and rates

2. Rely on the commercial market with numerous options available – guaranteed issue with no limitations on pre-existing conditions

The natives are restless. Hordes of commercial warriors are riding to the rescue to free TRS ActiveCare member school districts from state government bureaucratic control. One side has nothing to gain and everything to lose while the other side has everything to gain and nothing to lose. The odds are with the commercial insurance warriors.

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