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Arlington ISD reviews TRS ActiveCare options as claims remain above 100%
Summary
District staff briefed trustees on the TRS ActiveCare study, warning that long‑term claims have exceeded premiums (127–137% range), that leaving TRS carries substantial re‑entry fees and timing challenges, and that staff will return with concrete proposals for wellness incentives and possible market options.
Trustees heard an extended briefing Nov. 20 on Arlington ISD's health‑care options and the district's experience with TRS ActiveCare. Holly (district lead) and Scott (consultant/partner) outlined current enrollment and claims dynamics and outlined tradeoffs for remaining with TRS ActiveCare versus pursuing district alternatives.
Holly told trustees roughly 8,500 employees are eligible for medical coverage and about 4,900 enrolled this year; she said districts like Arlington have historically experienced claims ratios above 100% and cited a 137% ratio in 2023–24. "Last year... we were at a 137%," she said, underscoring the gap between premiums paid (about $37 million) and claims paid (about $45 million). Holly also noted that legislative changes now allow districts to opt back into TRS but may impose a risk stabilization fee when re‑entering (up to 40%).
Scott and other staff said the district needs stronger incentives and accountability in any wellness program to reduce high‑cost claims and build a case for alternative buying arrangements. Trustees expressed frustration that the district has discussed options for years without definitive proposals; some favored expedited exploration of opt‑out models while others urged caution because cost and coverage stability is uncertain in the private market.
Administrators said they would return with more detailed options and cost modeling over the next 60–90 days and a fuller proposal in January that would tie any wellness incentives to measurable claims reductions.
