Archive for February 9th, 2010

BISD To Audit Health Claims?

Tuesday, February 9th, 2010

magnifying-glass

The Brownsville Independent School District  (BISD) is concerned that their employee health care costs have increased over the past two years. Upon the advice of their insurance consultant, the BISD terminated their contract with HealthSmart PPO network and moved to the Texas True Choice PPO network. According to their insurance consultant, estimated claim savings to the district will be $4-$5 million in claim costs (see previous posts on this blog).

According to the BISD, annual claim costs through the Texas True Choice network in the four years prior to changing to the HealthSmart network were approximately $26 million, $23 million, $27 million and $28 million. With the change to the HealthSmart network for a two year period the claims spiked to $35 million and +$40 million.

In a January 2010 Board Meeting the BISD considered an action item to hire Claim Technologies Inc. to audit the BISD health plan for a fee not to exceed $143,880. We do not know if this item was approved.

http://www.allbusiness.com/education-training/education-administration-school-boards/12983487-1.html

Editor’s Note: BISD would be wise to hire an independent insurance consultant with expertise in forensic auditing and who has no ties to South Texas. The +$50 million budget item deserves close scrutiny.