“We do not pay Blue Cross to administer our plan at all.”
(WARNING: Excessive head scratching leads to baldness. Reader beware).
Hoodwinked School District Believes They Get Free TPA Claim Administration
The Edinburg Independent School District awarded their self-funded group medical plan to Blue Cross in 2018. Plan spend has since increased from $20,000,000 to +$40,000,000 in five years.
But, they believe, Blue Cross is costing them nothing. (Read on, it gets better)
The believe their BCBS admin fee is a negative $70.82. In other words they believe Blue Cross is paying Edinburg Independent School District for the privilege of providing free administration.
That’s got to look 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
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Edinburg ISD Ranks Ten Insurance Consultants
Insurance Consultants Make Pitch To ECISD
ECISD & DHR Establish On-site Health Care Clinic
School District Learns PPO Allowed = 338% of Medicare
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