PART 3. TEACHER RETIREMENT SYSTEM OF TEXAS
CHAPTER 41. HEALTH CARE AND INSURANCE PROGRAMS
SUBCHAPTER A. RETIREE HEALTH CARE BENEFITS (TRS-CARE)
The Board of Trustees of the Teacher Retirement System of Texas (TRS) adopts new §41.17 (relating to Limited-time Enrollment Opportunity for Medicare-eligible Retirees) under Subchapter A (relating to Retiree Health Care Benefits (TRS-CARE)) of Chapter 41 in Part 3 of Title 34 of the Texas Administrative Code without changes to the text as originally published in the May 31, 2024, issue of the Texas Register (49 TexReg 3917). The rule will not be republished.
REASONED JUSTIFICATION
The trust fund of the Texas Public School Retired Employees Group Benefits Program ("TRS-Care"), administered under Chapter 1575 of the Insurance Code, experienced growth in recent years stemming from federal changes to Medicare, TRS' improved contracts with Medicare Advantage and Part D drug benefits, and other factors.
TRS received correspondence from legislative leadership directing TRS to use TRS-Care fund growth to reduce premiums and offer a one-time enrollment opportunity for eligible TRS-Care Medicare Advantage participants. TRS evaluated how to maximize its fund balance to accomplish these goals while preserving the fund's long-term stability. TRS developed the new §41.17 in furtherance of the legislative direction and TRS' evaluation of the fund.
TRS is adopting new §41.17 to provide a limited-time enrollment opportunity for unenrolled retirees, dependents, surviving spouses, and surviving dependent children in anticipation of the upcoming TRS-Care open enrollment period (which begins on October 1, 2024) and the reduced premiums that would take effect on the next plan year, which begins January 1, 2025.
New §41.17 implements details of this limited-time enrollment opportunity, for example, specifying who is eligible, when eligible individuals may enroll, and when coverage will be effective. Eligible retirees, dependents, surviving spouses, and surviving dependent children will be eligible to enroll beginning October 1, 2024, through March 31, 2026.
COMMENTS
No comments on the proposed adoption were received.
STATUTORY AUTHORITY
This new §41.17 is being adopted under the authority of Chapter 1575, Insurance Code, which establishes the Texas Public School Retired Employees Group Benefits Act (TRS-Care), §1575.052, which allows the TRS Board of Trustees to adopt rules, plans, procedures, and orders reasonably necessary to implement Chapter 1575, including periods of enrollment and selection of coverage and procedures for enrolling and exercising options under the group program; Chapter 825 of the Government Code, which governs the administration of TRS; §825.102 of the Government Code, which authorizes the TRS Board of Trustees to adopt rules for the transaction of the business of the Board.
CROSS-REFERENCE TO STATUTE
The adopted new §41.17 affects Chapter 1575, Insurance Code, which establishes the Texas Public School Retired Employees Group Benefits Program (TRS-Care), §1575.052, which allows the TRS Board of Trustees to adopt rules, plans, procedures, and orders for periods of enrollment and selection of coverage and procedures for enrolling and exercising options under the group program.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on July 22, 2024.
TRD-202403213
Don Green
Chief Financial Officer
Teacher Retirement System of Texas
Effective date: August 11, 2024
Proposal publication date: May 31, 2024
For further information, please call: (512) 542-3528