Texas Governor Greg Abbott issued a letter today directing the Teacher Retirement System of Texas (TRS) to “implement the maximum feasible premium reductions that both preserve the long-term financial stability of the TRS-Care fund and reduce Medicare Advantage insurance costs for retired educators.”
This directive will not immediately reduce premiums, but it instructs the TRS Board of Trustees to consider maximum savings through premium reductions for TRS-Care Medicare Advantage participants. The next opportunity for TRS to consider premium reductions will occur during the July Board of Trustees meeting, with potential implementation as early as January 2027.
TRS-Care has significantly improved its financial health over the years. In 2017, the fund was in a “death spiral,” and a $1.1 billion shortfall resulted in plan changes that increased premiums for participants. As a result, more than 36,000 retirees and their dependents left the plan.
However, the TRS-Care fund’s condition has improved since that period. In 2025, retirees saw a reduction in their premiums, which, according to Abbott’s letter, saved participants “between $720 and $4,884 annually.”
The Texas Retired Teachers Association (TRTA) has been a staunch supporter of TRS-Care and efforts to improve the plan to provide retirees with high-quality, affordable health care. TRTA’s advocacy has been a key factor in maintaining the fund during its most turbulent times, and the organization welcomes the opportunity to pursue additional premium reductions for retired educators.
TRTA also extends its appreciation to Governor Abbott and the Texas Legislature for their diligent work on TRS policy matters and for making TRS retirees a priority. Additionally, TRTA congratulates TRS on its strong management and continued work on behalf of TRS-Care participants.
TRTA will continue to report on any developments related to TRS-Care.
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