On Friday, July 26, TRS staff recommended that the TRS Board of Trustees discontinue ActiveCare 3 health insurance effective Sept. 1, 2013. TCTA action rescued the program for at least another year, helping to ensure that employees who require the highest level of health insurance will continue to have comprehensive coverage for the 2013-14 school year.

ActiveCare 3 is the highest level of health insurance coverage provided through TRS, and as required by state law, is comparable to the coverage offered to state employees.

In recent years, ActiveCare 3 has become unsustainable, because as premiums continue to rise, healthier members have moved down to the more affordable levels, leaving Level 3 primarily populated with “high usage” enrollees. This in turn makes premiums rise even higher, driving more of the healthier members out, in an endless cycle.

However, state law required TRS to offer the state-employee-comparable coverage, until that law was repealed in the 2013 legislative session.

Staff subsequently recommended that Level 3 be eliminated, and all enrollees moved to Level 2, effective Sept. 1, 2013.

TCTA's testimony on ActiveCare 3

At the board meeting, TCTA expressed concern for school employees who need the coverage enough to warrant paying such high premiums as well as for the problems these employees would face by having their insurance change so significantly on such short notice. TCTA provided two suggestions, both of which were approved by the TRS Board of Trustees:

  1. Continue ActiveCare 3 in its current form at least through the 2013-14 school year.
  2. Research options for revising the coverage (now that TRS is no longer bound to conform to the state program) to see if a program can be devised that will still help those who need the higher level of coverage, but will be more affordable, allowing it to continue beyond the current school year.

TCTA appreciates the TRS Board and staff for their responsiveness to our suggestions, and we will continue working with them in the upcoming months on this difficult issue to ensure that ActiveCare participants have the best possible coverage.