Blue Cross administration fee is a negative $70.82 pepm………..
“In other words, we do not pay Blue Cross to administer our plan at all, we receive rebates for the plan year.” (Seeing is believing. Go HERE).
The district believes Blue Cross TPA services cost nothing. In fact, they are making money off TPA fees, not spending it. Their BCBS admin fee is a negative $70.82 which means Blue Cross is paying the Edinburg Independent School District for the privilege of providing free administration.
The next time the district seeks bids that’s going to look real good on a Request for Proposals spreadsheet.
“This charade is the equivalent to a car dealer giving a trade-in value off an inflated, arbitrary number, while selling the new car above factory invoice. The customer thinks it is a good deal. The car dealer ends up with a free used car and earns a profit off the new car.” – Hoodwinking – A Popular & Proven Sales Strategy
