For the first time in 20 years TRS ActiveCare member districts will be allowed to opt out of the program effective September 1, 2022. In our opinion most member districts will remain in TRS ActiveCare.
Here’s why:
TRS ActiveCare is A Defined Contribution Plan
TRS ActiveCare is a defined contribution plan. Participating school districts contributions are limited to a minimum of $150 per employee per month. Moving to a commercial health plan will require generally higher contribution rates in order to achieve minimum participation requirements fundamental to commercial health insurance plans.
Political Considerations
TRS ActiiveCare is managed by bureaucrats in Austin. On a local level, all blame for things gone wrong can be redirected to Austin saving the political hides of administration officials and board members. Life is good and jobs are safe when there is someone else to blame.
School Culture
It’s a culture like no other, rarely in parallel with corporate culture driven business decisions. Governance is characteristically fragmented and transitory with strong central leadership a rarity. Business decisions tend to be politically based at the expense of traditional American business practices.
Five Generally Held Perceptions
- Big is better. Being part of a larger pool of members produces better benefits and rates than a district can achieve on their own.
- Blue Cross Blue Shield has the best discounts in the universe.
- Administrative costs under TRS ActiveCare are lower than can be achieved by individual districts leaving more money for claims.
- Leaving TRS ActiveCare puts the district at risk in their ability to find affordable coverage and may even leave some districts without any coverage at all.
- Districts individually are too small to self-fund their benefit plan
It’s decision time. What is your district going to do?
