BUCA Earns “F” In Health Care Cost Containment

A +4,000 life Texas school district self-funds their medical plan using a BUCA as plan administrator and PPO network provider. How has their plan performed in the last seven years?

A recent insurance committee meeting from last month provides clues. A presentation by the BUCA representative laid out the projected plan finances going into the next plan year (2022).

We have historical claim data on this case going back to 2014. Here is a summary of paid claims for 2014, 2015 and projected claims for 2022:

2014                    $19.1 million

2015                    $24.0 million

2022                    $38.0 million

This case is 100% credible according to the BUCA representative. And, of note, membership has decreased 8% comparing 2014 to 2021.

Results: Poor. BUCA deserves a “F” and should be punished.

Rewarding Incompetence: Despite poor performance the school district agreed to renew for another one year contract through December 2022 despite receiving a failing grade.

Provider Community: Ecstatic.

Meanwhile back at the ranch several smaller school districts continue to maintain static rates over multiple years without any cost shifting of any kind whatsoever.

Note: The name of the school district is omitted as a courtesy so as not to cause clueless administration and school board members to suffer well deserved embarrassment and ridicule.

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