2021 Guidance for Employers Joining or Leaving TRS-ActiveCare

Legislation Affecting TRS-ActiveCare

Published: June 18, 2021
Last updated: Nov. 8, 2022

During the 87th Regular Legislative Session (2021), the Texas legislature passed Senate Bill 1444 (SB 1444), which was designed to give TRS-ActiveCare employers more flexibility, while protecting the stability of the plan (see Insurance Code, Sections 1579.1045 and 1579.155).
This new legislation means:

An employer that participates in TRS-ActiveCare cannot offer any alternative group health coverage.
An employer that participates in TRS-ActiveCare may choose to leave TRS-ActiveCare by notifying TRS by Dec. 31 of the year before the plan year they intend to leave the plan.
After giving proper notice, an employer that chooses to leave TRS-ActiveCare would leave on the first day of the plan year following the notice date (typically Sept. 1).
A participating employer that leaves TRS-ActiveCare may only re-join TRS-ActiveCare after a period of five plan years.
An employer not in TRS-ActiveCare today may choose to join TRS-ActiveCare by notifying TRS no later than Dec. 31 of the year before the plan year they intend to join and must stay in TRS-ActiveCare for at least five plan years.

Review the Timeline for Joining and Leaving TRS-ActiveCare

Prior to enactment of SB 1444, state law did not provide that employers could opt out after joining TRS-ActiveCare and required school districts and certain risk pools with 500 or fewer employees to participate in TRS-ActiveCare—this is no longer required.

Guidance and FAQs

TRS plans to release guidance as part of the implementation of this legislation and will link to it here.

Initial Guidance and FAQs - Released June 18, 2021

How to Request Claims Data

Highlights

Employers that are currently in TRS-ActiveCare do not need to submit a formal notice to TRS unless they plan to leave TRS-ActiveCare.

The Notice of Election to Discontinue form is binding and cannot be reversed once accepted by TRS.

Employers that currently participate in TRS-ActiveCare are not required to remain in TRS-ActiveCare for five years.

The new law means that an employer that participates in TRS-ActiveCare can routinely evaluate their options.

Employers in TRS-ActiveCare that decide to remain in the plan next year can still decide to leave in future years.

Commitment Period: Under the new state law, employers that are not currently participating in TRS-ActiveCare and elect to join must remain in TRS-ActiveCare for at least five years. This provision protects the stability of TRS-ActiveCare.

Exclusion Period: As a result of SB 1444, employers that leave TRS-ActiveCare must remain out of TRS-ActiveCare for at least a five-year period before they can rejoin TRS-ActiveCare. This provision also protects the stability of TRS-ActiveCare.

Next Steps

After an employer makes a decision about joining or leaving TRS-ActiveCare, they can declare their intent to TRS. They must use the process outlined by TRS.

How to Join TRS-ActiveCare

How to Leave TRS-ActiveCare