Conroe ISD to move employee coverage to TRS ActiveCare after workshop on $14.2M deficit

Conroe Independent School District trustees voted unanimously Nov. 18 to move the district—s employee health insurance from a self-funded plan to TRS ActiveCare and approved a $7 million transfer from the general fund to shore up the plan.

The action followed a board workshop in which administrators and benefits consultants presented plan results and options. Dr. Vincent opened the presentation by saying the district—s self-funded program covers about 6,300 employees and 4,000 dependents and that financial performance has ‘‘been really declining over the last 18 months,’’ producing a $14.2 million deficit in 2024–25. Benefits staff and Gallagher consultants said large claimants, a 37.2% rise in cancer-related claims, nearly a 70% rise in circulatory claims and a 27.6% jump in pharmacy spending (driven by specialty GLP-1 drugs) were the main cost drivers.

Trustees heard a reforecast projecting an $8.8 million deficit for the current year and a projected $14.1 million shortfall for 2026–27 if no plan design or premium changes are made. Administration outlined alternatives—including plan design adjustments, rebidding a third-party administrator, or a fully insured contract—but presented TRS ActiveCare as the sustainable option that removes the district—s long-term financial exposure. "If there is no ability for a year-to-year budget increase to shoulder trend, TRS is a sustainable future for you all to get you to a budget balance sooner," Gallagher consultant Derek Yiko said during the workshop.

Administrators addressed employee concerns about provider networks and pharmacy coverage: benefits staff said TRS uses the Blue Cross Blue Shield Essentials network, so employees likely would keep most doctors if TRS remains with Blue; staff also warned that pharmacy coverage and costs could vary by plan and encouraged employees to evaluate options during summer enrollment. The district plans to notify TRS by Dec. 31 and expects TRS to publish rates in April–May; staff recommended an effective coverage date of Sept. 1, 2026.

At the regular meeting the board approved the $7 million transfer to the health fund and then voted 7-0 to authorize the district to transition to TRS ActiveCare. Board members said the decision was difficult but necessary to avoid continued drains on the general fund, and administrators said they will conduct extensive employee outreach and provide enrollment support.

What comes next: the district must submit documentation to TRS before the Dec. 31 election deadline, and staff will communicate plan options and enrollment steps to employees ahead of the planned Sept. 1, 2026 start date. The board also approved a follow-up agenda item transferring funds for 2024–25 stabilization. No formal change to employee premiums was decided at the meeting; staff said premium and plan-design details will be shared as TRS publishes rates.