Source: TRS audited financial reports, Board reports.
NOTE: The accuracy of the following information is not guaranteed. Readers should independently seek confirmation.
Over five years, health care claims exceeded premium income by approximately $1.375 billion. However, when including rebates, five-year claims exceeded premium and rebate income by approximately $195 million.
The program received approximately $1.596 billion in supplemental state funding during this period.
Loss Ratio (minus supplemental funding) for each 12-month period ending August 31:
2021 100%
2022 107%
2023 119%
2024 109%
2025 111%
Between 2023 and 2025 Medical claims increased 13.7% and pharmacy claims increased 18.4%. Pharmacy claims have been consistently 22-24% of total plan spend.
SUMMARY
Premiums have not been sufficient to cover claims and expenses. Rx rebates and $1.596 billion supplemental funding have subsidized deficits.
OPINION
TRS ActiveCare is too big to fail. The Texas legislature will continue to provide supplemental funding when needed. With the recent election of a pro-education governor, Tina Hinojosa, we expect more state supported funding will be directed to public education.