Spring Independent School District leaders presented trustees with a history of the district's self-funded medical plan and a recommended path to rejoin the state's TRS ActiveCare plan for plan year 2026–27, pending board approval and TRS calculations of a one-time risk-stabilization fee.

Deputy Superintendent Miss Westbrooks told trustees that Spring ISD opted to self-insure in 2021 after sustained premium increases and to open district wellness clinics to provide low- or no-cost care. The district then became fully self-funded on Sept. 1, 2022 after state action limited districts' capacity to offer alternatives to TRS. Since moving to full self-funding the administration reported annual losses and said the district had absorbed cumulative deficits of about $43 million to date. Miss Westbrooks and Dr. King said the clinics were underutilized (below 70% utilization on many days) and the combination of catastrophic claims and low clinic use increased plan costs.

A newly enacted House bill (referred to in the presentation as House Bill 3126 and discussed in parallel with earlier Senate approaches) provides a path for districts that previously opted out to return to TRS ActiveCare if they submit a written intent by Dec. 31, 2025. Staff said returning districts face a TRS "risk stabilization fee," an up-front premium markup TRS estimates could be 10%–40% of the premiums for the first year and that the district's administrative estimate run in different scenarios would place the one-time fee in the $2.5M to $9.8M range depending on TRS' final calculation; TRS officials told staff the highest (40%) outcome was unlikely.

Trustees discussed the tradeoffs. Trustee Adams said he feared the district would repeatedly pick the wrong option and expressed concern about returning to a state plan. Doctor King and other administrators said the district's claims history and a relatively small group of catastrophic claimants account for a large share of costs (staff said the top 20 claimants represented roughly 33% of plan costs), which increases the district's risk profile under self-funding. Staff told trustees reentry would offer cost certainty in the form of a fixed premium, though the first-year risk-stabilization charge could be significant. The administration told the board they would submit claims data to TRS after the board authorized intent; TRS would calculate the stabilization fee in the spring and staff recommended trustees decide before the Dec. 31 statutory deadline.

Trustees asked for more detail on the components of TRS' calculation, how the fee would be split between district and employees, and scenarios showing net cost to the district under 10%, 20% and 40% assumptions. The board agreed to discuss the matter in regular session next Tuesday (not on consent) to give trustees time to review additional materials.

Why it matters: The district has absorbed large losses under its self-funded plan. Rejoining TRS ActiveCare could reduce year-to-year volatility and limit district exposure to catastrophic claims; however, a one-time stabilization fee and the loss of certain in-house clinic supports are tradeoffs trustees must weigh.

The administration said it will return to the board with additional detail on TRS' fee calculation, the specific premium impact to district and employee contributions, and comparative scenarios showing projected costs under return and continued self-funding.