At their August 19 board meeting trustees of the Crystal City Independent School District awarded the district health plan to Curative Insurance Company effective October 1.
We doubt the plan will ever go in effect since the district’s contribution is $225 per month while the employee only rate is $988 leaving employees with a $763 monthly cost share. Few employees will participate at that cost except very sick ones. That’s a problem because standard insurance company participation requirements will not be met resulting in a skewed spread of risk creating an insurance plan of last resort.
Employees electing coverage would be reducing their annual salary by $9,156. That kind of punishment won’t go unnoticed. It will affect morale and employee retention.
Poor financial management has plagued Crystal City ISD who faces closure, consolidation risk amid $9.2 million debt crisis. “The district has done a poor job managing its funds and managing its people,” Grill – CCISD Superintendent.
To make matters worse, the district’s newly appointed Agent of Record will be offering a skinny, limited coverage health plan option alongside Curative’s plan. Employees electing coverage would pay $166. Not too many will take that plan option either and the ones who do will make it even harder to achieve Curative’s participation requirement.
Texas school districts have been struggling with health insurance for years stemming primarily from low district contribution rates. A $225 district contribution as is the case with Crystal City ISD is unrealistic. Transferring costs on to the backs of Texas educators doesn’t control cost, it turbocharges costs. The older, sicker employees enroll while younger, healthier employees don’t. The latter find less expensive coverage on the outside.
In the case of Crystal City ISD we expect most would be better off seeking coverage on the open market. We suspect more than a few will qualify for federal subsidies.
Crystal City would be wise to adopt ICHRA if Curative Insurance Company pulls their offer which is likely. ICHRA would be their best option at this point. They should also consider joining TRS ActiveCare at the earliest opportunity, which is September 1, 2027 provided they give notice of intent by December 31, 2026.
HOMEWORK READING ASSIGNMENT:
How Are Texas School Districts Outside TRS ActiveCare Faring These Days?
Thinking About Leaving TRS ActiveCare?
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Brownsville ISD Employee Saves $7,597 On Family Health Insurance
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