The bankrupt TSHBP is attempting to collect millions from member Texas school districts to pay for uninsured losses for plan year 2024-2024.
| August 8, 2024 |
| Dear TSHBP Member Districts, |
| We hope this message finds you well as the new school year begins. We are providing an update on the Texas School Health Benefits Program (TSHBP) funding for the 2023-24 plan year and the additional contribution due. |
| The TSHBP Board has been meeting monthly to monitor claims for the 2023-24 plan period (September 1, 2023 – August 31, 2024). Based on the latest claims information through June 30, 2024, projections remain steady since the initial forecast. It is important to remember that providers have up to a year to file a claim for payment, although most providers file within the first three months of when a claim occurs. |
| At their June meeting, the Board reviewed and approved the budgetary needs for the 2023-24 plan year starting September 1, 2024, which includes additional funding for claims and expenses. In July, the Board then approved a resolution to clarify the following key items: |
| · Billing for each member district based on the average number of participating employees (PEPM) over the past 12 months.· Returning funds to members if claims are less than expected.· Additional contributions if projections exceed expectations.· The projected funding deficit of $18,519,802.78.· Payment options: pay the total outstanding amount or continue with $150 PEPM payments. |
| Higginbotham staff will send a statement of the total outstanding amount due, including the payment plan option to assist districts and provide documentation to auditors as needed. |
| The Board plans to provide regular updates to all school district members from the 2023-24 plan year, with the next update scheduled for early October. This update will include a review of projections through August 31, 2024. The TSHBP independent actuary and auditor will begin their work after the plan year ends on August 31, 2024. The actuarial report is expected by late November, and the audit by February. |
| We recognize the budgetary challenges the additional contribution brings to your district and are committed to working with every member to ensure TSHBP meets its claims obligations. |
| Should you have any questions or require further clarification, please do not hesitate to contact us. We are here to assist you in any way we can. |
| Sincerely, |
| The TSHBP Team |
