{"id":2543,"date":"2017-07-24T09:11:47","date_gmt":"2017-07-24T14:11:47","guid":{"rendered":"https:\/\/trta.org\/?p=2543"},"modified":"2017-07-24T09:11:47","modified_gmt":"2017-07-24T14:11:47","slug":"house-appropriations-meets-tomorrow-expanded-review-of-senate-bill-19","status":"publish","type":"post","link":"https:\/\/trta.org\/es\/house-appropriations-meets-tomorrow-expanded-review-of-senate-bill-19\/","title":{"rendered":"House Appropriations Meets Tomorrow, Expanded Review of Senate Bill 19"},"content":{"rendered":"

As the first called special session of the 85th Legislature continues, members of the Texas Retired Teachers Association (TRTA) are hearing intense discussions about bills that may impact their retirement benefits.<\/p>\n

House Appropriations Meets Tuesday, July 25<\/strong><\/h3>\n

Tomorrow, Tuesday, July 25, the House Appropriations Committee will meet to discuss several bills impacting retirement benefits for Teacher Retirement System of Texas (TRS) retirees. The meeting will begin at approximately 10:00 a.m. after the full House has adjourned or recessed in Room E1.030 of the Texas Capitol. A live webcast of the meeting will be made available from this webpage<\/a> once the meeting begins.<\/strong> TRTA Executive Director Tim Lee will testify.<\/p>\n

TRTA encourages members living in the area who are able to come to Austin tomorrow to attend!<\/p>\n

The following bills are scheduled to be heard during tomorrow\u2019s meeting:<\/p>\n\n\n\n\n
HB 20<\/a><\/td>\nAuthor:<\/td>\nAshby | Darby | VanDeaver | Zerwas | Howard<\/td>\n<\/tr>\n
<\/td>\nCaption:<\/td>\nRelating to an appropriation of money from the economic stabilization fund to decrease health insurance premiums and deductibles for certain health benefit plans administered by the Teacher Retirement System of Texas.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n\n
HB 76<\/a><\/td>\nAuthor:<\/td>\nDarby | Guillen | Oliveira<\/td>\n<\/tr>\n
<\/td>\nCaption:<\/td>\nRelating to a supplemental appropriation for Teacher Retirement System of Texas retiree health.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n\n
HB 80<\/a><\/td>\nAuthor:<\/td>\nDarby | Guillen | Oliveira<\/td>\n<\/tr>\n
<\/td>\nCaption:<\/td>\nRelating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n\n
HB 151<\/a><\/td>\nAuthor:<\/td>\nGooden | Guillen | Thompson, Senfronia | Darby | Cook<\/td>\n<\/tr>\n
<\/td>\nCaption:<\/td>\nRelating to the administration of certain group benefits by the Teacher Retirement System of Texas; making an appropriation.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/h3>\n

Expanded Review of Senate Finance Committee Meeting, SB 19<\/strong><\/h3>\n

As our members know, the Senate Finance Committee met this past Saturday, July 22<\/a>to discuss Senate Bill 19. The bill was filed for the first called special session of the 85th Legislature by Senator Jane Nelson<\/a> (R \u2013 Flower Mound) and co-authored by Senator Joan Huffman<\/a> (R \u2013 Houston).<\/p>\n

SB 19 lays out the Texas Senate\u2019s plan for providing additional revenue to the TRS-Care retiree health insurance program. The Senate\u2019s plan to address TRS-Care funding includes as much as $212 million in additional funding. To read the full text of SB 19, please click here<\/a>. You can view archived footage of the meeting by clicking here<\/a>. Discussion of SB 19 begins at about 35 minutes into the meeting.<\/p>\n

During the meeting, Senator Huffman shared a history of TRS-Care funding problems, stating that \u201cthe structural funding of TRS-Care is flawed. Because funding is based on percentages of active employee payroll rather than actual healthcare costs, we continue to face shortfalls every biennium.\u201d<\/p>\n

The Legislature chose to freeze premiums and deductibles for retirees from 2005 until the recent 85th<\/sup> Legislative Session, which further compounded the program\u2019s funding problems. In 2015, the Legislature paid $768 million to cover the TRS-Care shortfall; however, the shortfall ballooned to over $1 billion by 85th<\/sup> Legislative Session. Senator Huffman stated that \u201ceven after major reforms, we still could have problems next session,\u201d as the TRS-Care shortfall is projected to be between $300 to $500 million by 2019.<\/p>\n

\u201cI can say with assurance that no one in the Legislature wanted to leave the retired teachers without health insurance,\u201d said Huffman, after explaining that House Bill 3976, which made significant structural changes to TRS-Care, passed unanimously in both bodies at the end of the 85th<\/sup> Regular Session to avoid a complete shutdown of the program.<\/p>\n

Huffman also said that she, Chairman Nelson, and Lieutenant Governor Dan Patrick have made a commitment to continue the added benefits being provided by SB 19. \u201cOur intention moving forward is that this will be your benefits\u2026 we intend to make it a priority.\u201d<\/p>\n

Senator Kirk Watson<\/a> (D \u2013 Austin) asked if the additional funding provided by SB 19 is intended to be permanent. Huffman replied that it is the intent to keep the funding in base budget. Watson stated \u201cif what we want to do is make it a commitment, the way to make it a commitment would be to raise the state\u2019s statutory contribution rate,\u201d and asked \u201chave you identified what you would recommend we use as a source of funding beyond this?\u201d<\/p>\n

Huffman said that it has been discussed. \u201cAs you know it\u2019s difficult to commit to a future Legislature how we are going to do things . . . but I think publicly stating that the commitment is here for the retired teachers is significant and meaningful. I\u2019m confident that it means we will continue to do what we need to do for the retired teachers.\u201d<\/p>\n

Huffman reiterated that part of the issue is TRS-Care\u2019s flawed funding mechanism, and expressed hope that TRS-Care would be part of discussion on public school finance next session, though this is not how the Legislature has traditionally addressed funding for TRS-Care.<\/p>\n

Chairman Nelson replied by saying \u201cwe need to take advantage of the opportunity we have of this being placed on the call and we need to look at how can we use this to get us up to next session\u2026it\u2019s all about us and where the Legislature is going to place our priorities next session, and I\u2019m telling you right here right now my priority is going to be on our teachers next time.\u201d She continued \u201cI can promise you is it will be a top priority and I actually heard our Lieutenant Governor say this is going to be a priority.\u201d<\/p>\n

Senator John Whitmire<\/a> (D \u2013 Houston) echoed some of Senator Watson\u2019s remarks by urging committee members to \u201ckeep working\u2026with some very real, concrete solutions\u201d and to \u201cwork with the House better than we are.\u201d<\/p>\n

TRS Executive Director Brian Guthrie and Chief Health Care Officer Katrina Daniel served as resource witnesses for the committee, and addressed inquiries about future shortfalls. The TRS-Care shortfall is expected to be between $500 and $700 million by 2020-2021, $2 billion by 2022-2023, and between $3 and $3.5 billion by 2024-2025.<\/p>\n

TRTA Executive Director Tim Lee testified during the meeting, thanking Lieutenant Governor Dan Patrick for focusing on TRS-Care, as well as Senator Huffman for her tireless work on the program and Chairman Nelson for her work to find the money to pay for the proposed changes in SB 19.<\/p>\n

\u201cI want to thank all of you for what I think is the most human discussion I\u2019ve ever heard on the TRS-Care issue.\u201d Tim continued by saying that \u201cwe are in a moment in time where we have a chance to do something, and I am heartened to hear that we will come back with another focus on this in the future session.\u201d<\/p>\n

\u201cMy members are scared and they\u2019re afraid and they\u2019re concerned–they don\u2019t know how they\u2019re going to pay for their medicine,\u201d said Lee. \u201cThese are important issues. Whatever goes on between the House and the Senate this special session, I implore you please do not let this session end with nothing happening\u2026something has to happen.\u201d Lee said that the Texas House is discussing possible use of the Rainy Day Fund to help with TRS-Care, saying that retirees are grateful their program survived but many \u201cdo not know how they are going to pay the cost of the care.\u201d<\/p>\n

Huffman thanked Tim for his work, saying he and TRTA have been instrumental in bringing the concerns of the retired teachers to the Senate. She also agreed that the Senate needs to work with the House on this issue.<\/p>\n

Finalizing his remarks, Lee said \u201cwe are struggling against something that none of us control, and that is the price of healthcare,\u201d adding that \u201cwhile I cannot say one approach is better than the other, I will say that the Governor, Lieutenant Governor, members of this committee, members of the Legislature\u2014I appreciate the focus on this issue and so do my members.\u201d<\/p>\n

Senator Lois Kolkhorst<\/a> (R \u2013 Brenham) discussed cost drivers for the program, stating that \u201cwe (the Legislature) are not going to be able to afford the trajectory we are on, not just as a state, but as a nation.\u201d<\/p>\n

Senator Watson responded by saying \u201cwe have an obligation to meet the needs of these people that we\u2019ve made commitments to that are our retired teachers in the context of whatever is the cost of medical care. I don\u2019t want anybody to listen to us complain about the cost of medical care\u2026as though that is an excuse for us not properly funding these programs.\u201d The true burden, he said, is on the retirees.<\/p>\n

TRTA appreciates the many comments and concerns expressed by members of the Senate Finance Committee, and will work with both the Senate and the House to ensure that financial relief for retirees is passed during the special session.<\/p>\n

TRTA Advocacy Tip for Members<\/strong><\/h3>\n

Let\u2019s take this opportunity we have during special session to be as effective as possible! TRTA encourages members to like their legislators\u2019 Facebook pages and communicate with them often during special session. A lot of positive work is being done to help retired teachers right now, and it is vital that we keep the lines of communications open with our Senators and Representatives.<\/p>\n

Please ask your legislators to work with their colleagues to add as much additional funding to TRS-Care as possible! Not on Facebook? Use our toll-free Legislator Hotline to call your legislators today: 1.888.674.3788!<\/p>\n

Senate Bill 19 Proposed Changes<\/strong><\/h3>\n

Senate Bill 19 Proposed Deductible Changes<\/strong><\/p>\n

Non-Medicare Retiree\/Family Deductibles<\/u>
\nFrom $3000\/$6000 to $1500\/$3000<\/p>\n

Medicare Retirees<\/u>
\nMedicare Retiree from $146 to $121
\nMedicare Retiree & Spouse from $590 to $565
\nMedicare Retiree & Child(ren) from $504 to $479
\nMedicare Retiree & Family from $1106 to $1081<\/p>\n

Retirees with Adult Disabled Children<\/u>
\nNon-Medicare Retiree & Child(ren) from $433 to $233
\nNon-Medicare Retiree & Family from $1074 to $874
\nMedicare Retiree & Child(ren) from $504 to $304
\nMedicare Retiree & Family from $1106 to $906<\/p>\n

Senate Bill 19 Proposed MOOP Changes <\/strong><\/p>\n

Non-Medicare Retiree\/Family with Adult Disabled Children Maximum Out-of-Pocket <\/u>
\nFrom $6650\/$13,300 to $3000\/$6000<\/p>\n

TRS-Care Premiums<\/strong>
\nCurrent 2017 Premiums
\nVs. HB 3976 (Passed during Regular Session)
\nVs. SB 19 (Proposed, not yet passed)<\/strong><\/h3>\n\n\n\n\n\n
Current Premiums<\/td>\n1\/1\/2018 Illustrative Retiree Premiums (HB 3976)<\/td>\nSenate Bill 19 Illustrative Premiums<\/td>\n<\/tr>\n
Prior to January 1, 2018<\/td>\nCalendar Year 2018<\/td>\nCalendar Year 2019<\/td>\nCalendar Year 2018<\/td>\nCalendar Year 2019<\/td>\n<\/tr>\n
\n

Non-Medicare Retirees<\/u>
\nRetiree Only= $0 – $310
\nRetiree & Spouse= $30 – $665
\nRetiree & Child(ren)= $28-$392
\nRetiree & Family= $58 – $747<\/p>\n

Medicare B Only Retirees<\/u>
\nRetiree Only= $0-$245
\nRetiree & Spouse= $25-$600
\nRetiree & Child(ren)= $34 – $327
\nRetiree & Family= $59 – $682<\/p>\n

Medicare A&B Retirees<\/u>
\nRetiree Only= $0 – $110
\nRetiree & Spouse= $20 – $465
\nRetiree & Child(ren)= $41 – $192
\nRetiree & Family= $61 – $547<\/td>\n

Non-Medicare Retirees<\/u>
\nRetiree Only= $200
\nRetiree & Spouse= $739
\nRetiree & Child(ren)= $433
\nRetiree & Family=$1074<\/p>\n

Medicare Retirees<\/u>
\nRetiree Only= $146
\nRetiree & Spouse=$590
\nRetiree & Child(ren)= $504
\nRetiree & Family= $1106<\/p>\n

Current Disability Retirees not Eligible for Medicare<\/u>
\nRetiree Only= $0
\nRetiree & Spouse= $539
\nRetiree & Child(ren)= $233
\nRetiree & Family= $874<\/td>\n

Non-Medicare Retirees<\/u>
\nRetiree Only= $250
\nRetiree & Spouse= $789
\nRetiree & Child(ren)= $483
\nRetiree & Family=$1124<\/p>\n

Medicare Retirees<\/u>
\nRetiree Only= $146
\nRetiree & Spouse=$590
\nRetiree & Child(ren)= $504
\nRetiree & Family= $1106<\/p>\n

Current Disability Retirees not Eligible for Medicare<\/u>
\nRetiree Only= $0
\nRetiree & Spouse= $539
\nRetiree & Child(ren)= $233
\nRetiree & Family= $874<\/td>\n

Non-Medicare Retirees<\/u>
\nRetiree Only= $200
\nRetiree & Spouse= $739
\nRetiree & Child(ren)= $433
\nRetiree & Family=$1074<\/p>\n

Medicare Retirees<\/u>
\nRetiree Only= $121
\nRetiree & Spouse=$565
\nRetiree & Child(ren)= $479
\nRetiree & Family= $1081<\/p>\n

Current Disability Retirees not Eligible for Medicare<\/u>
\nRetiree Only= $0
\nRetiree & Spouse= $539
\nRetiree & Child(ren)= $233
\nRetiree & Family= $874<\/p>\n

Retirees with Adult Disabled Children<\/u>
\nNon-Medicare Retiree & Child(ren)= $233
\nRetiree & Family= $784<\/p>\n

Medicare Retiree & Child(ren)= $304
\nRetiree & Family= $906<\/td>\n

Non-Medicare Retirees<\/u>
\nRetiree Only= $250
\nRetiree & Spouse= $789
\nRetiree & Child(ren)= $483
\nRetiree & Family=$1124<\/p>\n

Medicare Retirees<\/u>
\nRetiree Only= $121
\nRetiree & Spouse=$565
\nRetiree & Child(ren)= $479
\nRetiree & Family= $1081<\/p>\n

Current Disability Retirees not Eligible for Medicare<\/u>
\nRetiree Only= $0
\nRetiree & Spouse= $539
\nRetiree & Child(ren)= $233
\nRetiree & Family= $874<\/p>\n

Retirees with Adult Disabled Children<\/u>
\nNon-Medicare Retiree & Child(ren)= $283
\nRetiree & Family= $924<\/p>\n

Medicare Retiree & Child(ren)= $304
\nRetiree & Family= $906<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Currently, any retiree who selects TRS-Care 1 with retiree-only coverage has a $0 premium. Premiums for Care 2 & 3 are currently determined by a retiree\u2019s Medicare status and years of service.<\/p>\n

Beginning 1\/1\/2018, TRS will provide a $0 premium for current disability retirees through 2021, a blended stair-step premium for non-Medicare retirees and a blended premium for Medicare eligible retirees regardless of whether or not they are eligible for Part A at no cost or purchased Part B.<\/p><\/div>\n

 <\/p>\n

Prescription Coverage<\/h3>\n

No changes were made to the proposed prescription drug plan designs from HB 3976.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n1\/1\/2018 Standard Plan<\/td>\n1\/1\/2018 Medicare Advantage Plan<\/td>\n<\/tr>\n
Retail Copays<\/u><\/td>\nNon-Medicare retirees (under age 65)<\/td>\nAll Medicare retirees (age 65 and older)<\/td>\n<\/tr>\n
Generic<\/td>\nPreventative Maintenance $0
\n80%\/20% (after deductible is met)<\/td>\n		$5<\/td>\n<\/tr>\n
Preferred Brand<\/td>\n80%\/20% (after deductible is met)<\/td>\n$25<\/td>\n<\/tr>\n
Non-Preferred Brand<\/td>\n80%\/20% (after deductible is met)<\/td>\n$50<\/td>\n<\/tr>\n
Mail Order Copays<\/u><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Generic<\/td>\n80%\/20% (after deductible is met)<\/td>\n$15<\/td>\n<\/tr>\n
Preferred Brand<\/td>\n80%\/20% (after deductible is met)<\/td>\n$70<\/td>\n<\/tr>\n
Non-Preferred Brand<\/td>\n80%\/20% (after deductible is met)<\/td>\n$125<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Thank You<\/strong><\/h3>\n

Thank you for your membership to TRTA! TRTA has more than 82,000 members, but there are more than 350,000 TRS retirees. That means hundreds of thousands of TRS retirees are not involved in the largest retiree organization advocating for their TRS benefits.<\/p>\n

To improve funding for TRS-Care, we need as many retirees as possible to join TRTA and stand with us!<\/strong><\/p>\n

It is vital that you join TRTA today<\/a>! If you already are a member, please ask your fellow retirees to join. Many retirees are still unaware of the impending TRS-Care changes! Let\u2019s all work together to improve retirement benefits for current and future retirees.<\/p>\n

Be sure to connect with us via Facebook<\/a>, Twitter<\/a> and YouTube.<\/a><\/p>\n

<\/a><\/div>","protected":false},"excerpt":{"rendered":"

As the first called special session of the 85th Legislature continues, members of the Texas Retired Teachers Association (TRTA) are hearing intense discussions about bills that may impact their retirement benefits. 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