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10 Apr
0

Texas Senate to Vote on SB 788

Use our Action Alert to email your Senator today or call 1-888-674-3788 to talk to your Senator today!

The Texas Senate is preparing to vote on SB 788. SB 788 proposes to dramatically alter the state-run retiree health insurance program, TRS-Care. SB 788 is on the state’s intent calendar. Bills on the intent calendar can be called to vote at any time.

Authored by Senator Joan Huffman (R-Houston), SB 788 proposes to move all pre-65 retirees into a high deductible health care plan. The deductible is expected to be $4,000. Meanwhile, all Medicare eligible retirees, those ages 65 and older, would be put into Medicare Advantage.

The Senate’s budget plan includes $311 million to help fill the $1 billion budget shortfall for TRS-Care. The bill would accomplish this by increased the State’s contribution level to TRS-Care from 1 percent of active teacher payroll to 1.25 percent. However, retirees would pay for the remainder of the budget shortfall, which is projected to be close to $700 million.

The Houston Chronicle released an op-ed on April 7 detailing why they believe SB 788 is a raw deal for retirees:

“Here’s why lawmakers’ math doesn’t add up: Approximately 56,000 teachers with roughly 22,000 dependents have retired after decades of service, are under age 65 and have not yet qualified for Medicare. The average annuity payment for a retired teacher is $2,035 month, before federal income tax. Under the Senate plan, the proposed deductible for the TRS-Care plan would rise from around $400 to $4,000 for an individual. Prescription medication is also subject to the deductible, as there is no prescription drug coverage with this proposal.”

For the high-deductible plan covering participants who are under 65, premiums would gradually increase over the course of four years, beginning in 2018. See an example of proposed premiums for the HD plan below.

· Calendar Year 2018: Retiree only – $250/month, or $3,000 annually with a $4,000 deductible

· Calendar Year 2019: Retiree only – $310/month, or $3,720 annually with a $4,000 deductible

· Calendar Year 2020: Retiree only – $370/month, or $4,440 annually with a $4,000 deductible

· Calendar Year 2021: Retiree only – $430/month, or $5,160 annually with a $4,000 deductible

These are illustrative premiums; actual premiums will depend on funding and plan experience.

Retirees 65 and over would have a health care plan with a $146 per month premium. These retirees would be put into Medicare Advantage. You can read TRTA’s full report on SB 788 from its Senate State Affairs meeting.

Retirees are willing to do our part, but the Legislature must work with us to keep TRS-Care affordable. Please call and email your Senators today to voice your concerns about SB 788. Use our legislative hotline (1-888-674-3788) to call your Senators today!

TRTA members have communicated loud and clear that this plan is unaffordable, and many have recommended the following changes:

  1. The deductible should be lowered from the staggering $4,000 amount.
  2. The Legislature must ensure adequate medical coverage for those in Medicare Advantage. Retired teachers must be assured that there will be network coverage in their area. Many doctors and health care providers tell retirees that they do not accept Medicare Advantage.
  3. The bill should provide a plan for prescription drug coverage for pre-65 retirees.
  4. The Legislature must agree on additional funding for TRS-Care. Current budget scenarios suggest that retirees will carry a disproportionate share of the cost.

You can learn more about the TRS-Care issue by visiting our fact page.

Thank You

Thank you for your membership to TRTA. We are fighting ardently for your benefits every day at the Capitol. If you are not yet a TRTA member, please join here. Be sure to read our comprehensive Frequently Asked Questions about TRS-Care here.

Be sure to like us on Facebookfollow us on Twitter and subscribe to our YouTube channel.

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07 Apr
0

Texas House Passes Budget Bill, Provides An Additional $500 Million For TRS-Care

The Texas House of Representatives passed its budget this morning. The budget includes the statutory contribution to TRS-Care as well as $500 million coming out of the Economic Stabilization Fund, also known as the Rainy Day Fund. The statutory state contribution for TRS-Care is 1 percent of active educator payroll.

Representatives debated the bill early into the morning, as it received more than 400 amendments on various issues that did not regard TRS-Care. The bill passed by a vote of 132-16.

The fight for health care funding is not over! The House’s commitment to retired teachers is to increase state-based funding for TRS-Care and add the $500 million, which passed this morning. A conference committee will negotiate will the final budget before it can be voted on by both chambers.

TRTA would like to thank its members for all the emails and phone calls sent to House members. This vote was critical in keeping TRS-Care affordable. TRTA would like to see the Legislature use this funding to reduce the impact of SB 788, which would create a $4,000 deductible plan for under-65 retirees, and would move all Medicare eligible retirees into Medicare Advantage. SB 788’s proposed changes simply are not affordable for many of our members.

TRTA has heard our members loud and clear. Working together, we will continue to send a strong, unified message to our elected leaders.

No changes were made to the TRS pension fund. House members voted to maintain the state’s contribution of 6.8 percent of active educator payroll to the TRS pension fund. This amount is required by the statute passed in 2013, SB 1458, and it ensures the actuarially soundness target for the TRS fund.

Stay tuned to the Inside Line, as SB 788 will go up for a vote as early as next week.

Thank You

Thank you for your steadfast dedication to retirees all across Texas and your membership to TRTA!

We are fighting ardently for your benefits every day at the Capitol. If you are not yet a TRTA member, please join here. Be sure to read our comprehensive Frequently Asked Questions about TRS-Care here.

Be sure to like us on Facebookfollow us on Twitter and subscribe to our YouTube channel.

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05 Apr
0

MEMBER ACTION ALERT – House Voting Thursday On TRS-Care Funding!

The Texas House of Representatives is set to take the most important vote of the legislative session regarding TRS-Care!

Click here to send an email to your representative encouraging them to fund TRS-Care!

On Thursday, April 6, 2017, the Texas House is scheduled to debate and vote on Senate Bill 1, the appropriations bill for the 85th Legislative Session. This bill will set the state budget and expenditures for the 2018-19 biennium. More than 400 amendments have been filed to the budget, and we can expect a long and arduous debate!

This budget vote is significant for several reasons:

  • The house budget contains at least $500 million in state appropriations for TRS-Care, which is almost $200 million more than the amount approved by the Senate;
  • These additional dollars may be used to lower the proposed $4,000 deductible for TRS-Care participants under the age of 65 and/or to extend the life of TRS-Care;
  • TRS-Care’s funding is contingent upon a two-thirds vote from the House as opposed to a majority vote (100 votes are needed instead of 76);
  • This is because the money must be appropriated from the Economic Stabilization Fund (also known as the Rainy Day Fund), and the vote is considered politically risky for some legislators.
  • Your representative’s vote will be CRITICAL in passing this funding bill.

Take Action Today!

Now is the time for our statewide team of dedicated education retirees to send a positive message to our partners in the Texas House, letting them know that we support their vote to use the Rainy Day Fund to “Keep TRS-Care Affordable!”

Over the next two days, TRTA is asking that you do the following:

  1. Email your state representative today by clicking here.
  2. CALL your state representative today (April 5) and tomorrow (April 6), and use the talking points below to help you. Be sure to use our toll-free legislative hotline 1-888-674-3788.
  3. Forward this email to your friends and colleagues, and share it via social media to help us spread the word that now is the time to take action to “Keep TRS-Care Affordable!”

Sample Phone Script

Use the message below to guide you when communicating with your State Representative.

“Hello, my name is _______. I am a retired Texas educator, a member of TRTA, and I live in your district.

Thank you for being a public servant in our state and our community. As a fellow public servant who relies on my monthly TRS annuity to pay my bills, I support your vote to use the Rainy Day Fund to help retired educators keep our health care program affordable.

We hope you will help us by using any funding for TRS-Care to reduce the proposed $4,000 deductible for retirees under the age of 65 and to extend the program’s life for the future.

Retirees are willing to do our part to pay for TRS-Care! We appreciate your vote to use the Rainy Day Fund to keep TRS-Care affordable for the 260,000 retirees who rely on the plan to keep us and our families healthy.”

Thank You!

It is critical that all members of TRTA lift their unified voice to maximize support for additional funding for TRS-Care! Help us spread the word that now is the time to take action!

Thank you for your steadfast dedication to retirees all across Texas and your membership to TRTA!

We are fighting ardently for your benefits every day at the Capitol. If you are not yet a TRTA member, please join here. Be sure to read our comprehensive Frequently Asked Questions about TRS-Care here.

Be sure to like us on Facebookfollow us on Twitter and subscribe to our YouTube channel.

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