Today I witnessed an extraordinary meeting wherein a deep South Texas public school district, employing over 7,000 teachers and support staff, awarded a $38,000,000+ group health insurance contract to a new vendor recommended by a paid insurance consultant.
Being in the insurance industry for almost 40 years, I had a distinct advantage over most of the spectators who attended since I know the business and understand the semantics. What I heard at the meeting concerns me deeply, especially as a taxpayer of the Brownsville Independent School District.
The BISD fired the current claim administrator to “save money.” That is nonsense. A claim administrator does not save money for a client, they simply process claims.
If, as explained, the BISD claims went up last year, was it determined why? Not from what I heard listening to the paid insurance “expert.” All I heard was that a “claim re-pricing” exercise was employed. A claim re-pricing exercise does not work, and I can prove it.
None of what I heard at this meeting adds up. I have a lot of unaswered questions. There must be more to this mystery.