TRS ActiveCare Under Siege

Regional service centers have now been effectively placed in a position where they must make a recommendation to the state as to whether a commercial health plan alternative is better for member districts than the TRS ActiveCare government plan.

Will the government health plan for Texas school employees survive long term or will the Texas legislature allow it to winnow away into nothingness? The next biennial legislative session in 2023 will take on the issue once again.

Under Senate Bill 1444 each regional education service center must conduct an assessment of three alternative health coverage options that are available on the open market with a determination if some or all of the districts in the region should jointly seek health coverage under that alternative as a group.

This requires a non-binding recommendation to be made by each regional service center by November 1, 2022 for consideration in the next legislative biennial session in 2023.

Background

(SOURCE: Senate Research Center, Austin, Texas)

When researching methods to help teachers and school district staff save money it was noted that some of the school districts that have opted out of TRS Active Care have chosen health care options that save employees money on premiums and deductibles. The numbers illustrate that families save more on health plans outside TRS Active Care.

S.B. 1444 is an effort to add local control to the health care insurance options.

Interested parties note that certain school districts are required to participate in the uniform group coverage program established under the Texas School Employees Uniform Group Health Coverage Act and contend that this lack of choice leads to high costs and reduced benefits for teachers. S.B. 1444 seeks to address this issue by removing the requirement that these districts participate in the program, authorizing a school district to elect not to participate in the program, and providing for a regional rating method for determining premiums.

S.B. 1444 amends current law relating to participation in the uniform group coverage program for active school employees and to a study concerning health coverage for school district employees.

SENATE BILL 1444 Provisions include establishment of a Health Coverage Advisory Committee by each regional education service center to conduct studies in three areas:

  1. Provide an overview of health coverage plans made available to member districts
  2. Initiate a survey of district employees to determine member satisfaction with their health care benefits
  3. Conduct an assessment of three alternative health coverage options that are available on the open market with a determination if some or all of the districts in the region should jointly seek health coverage under that alternative as a group

Regional service centers have now been effectively placed in a position where they must make a recommendation to the state as to whether a commercial health plan alternative is better for member districts than the TRS ActiveCare government plan.