TRS board adopts health insurance plan changes
Date Posted: 6/17/2016
The Teacher Retirement System (TRS) Board of Trustees met Thursday to discuss premium and plan design changes for both TRS-Care and ActiveCare, the health insurance programs offered to retired and active public education employees. Both programs have faced significant structural funding issues that have caused the retiree plan to be financially unstable and the active employee plan to have employee premiums and out-of-pocket expenses that are greater than comparable private sector plans. ActiveCare The Board adopted premium changes for TRS ActiveCare for the upcoming plan year. The good news is that those premium increases are going to be relatively small compared to historical increases. The bad news is that the increases will likely be borne entirely by employees, unless individual school districts choose to increase their contributions to employee health insurance. The state contribution remains $75 per employee per month and has not changed since the health insurance program was created in 2001. ActiveCare premium increases and plan design changes for the upcoming year:
- ActiveCare 1 HD: 0%
- ActiveCare Select: 2.2 to 2.3%
- ActiveCare 2: 5%
- Maximum out-of-pocket limits are increased for all plans.
- Retail pharmacy co-pays for maintenance drugs are increased to $35 for generic drugs, $60 for preferred brand, and $90 for non-preferred brand.
- HMO increases range from 5% to 13% depending on the HMO and tier of coverage.
- There will be no increase in premiums for the upcoming plan year.
- Medical deductibles and out-of-pocket expenses will be increased for all plans.
- Existing pharmacy co-pays are increased by $3 to $25 by tier for the traditional plans.
- A retail maintenance co-pay structure for the traditional prescription drug plan will be implemented.
- Effective January 1, 2017, the prescription drug plan for Medicare eligible members will be the Medicare Part D plan, with members who do not have either Part A or Part B remaining in the traditional prescription drug plan. Pharmacy co-pays for Medicare Part D will remain at current levels.
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