Concerns Raised At Brownsville ISD Insurance Meeting


“Insurance Agents are Free, Insurance Consultants are Not”

A recent insurance committee meeting of the Brownsville Independent School District was held to review the district’s self-funded health insurance plan including updates on the district’s current request for proposals process.

Concerns were raised by members of the committee.

Health care  costs continue to exceed plan contributions. Plan contributions were increased approximately 8% last year, from $380 to $410 per plan participant. However, costs continue to escalate, exceeding plan contributions by millions of dollars per year.

The district has received twelve  (12) Third Party Administration (TPA) proposals and eight (8) Pharmacy Benefit Manager (PBM) proposals in an on-going RFP process.

The district has hired two insurance consultants to review the proposals and make recommendations to the BISD Board of Trustees.

BISD trustee Rodriguez voiced concerns as to the need for a fee based insurance consultant instead of an insurance agent “whose cost is paid by the insurance companies.”

Other concerns voiced by Rodriguez included the results of the RFP process at the Sharyland and Edinburg ISD’s. In both cases the consultant recommended C.L. Frates as the TPA, replacing Blue Cross and other “big players.” (See 40:00 – 43:30 of meeting video below).

The Brownsville Independent School District, the largest employer south of San Antonio with over 7,000 full time employees, is located in deep South Texas

See meeting video here:


From a Stop Loss Carrier:

CL Frates out of OK city?   Wow  who pick them. over web, gpa, umr, meritain?

From an Insurance Agent:

Roger Garza, owner of Valley Risk, a McAllen based insurance consulting firm. He is the consultant for Sharyland, Edinburg, and Weslaco ISD. He has Frates in Sharyland and Weslaco, and now he is recommending Frates at Edinburg ISD. Edinburg ISD is in an active RFP process. Garza has ranked Frates #1, EBSO #2, BCBS #3 Now we understand Garza is the consultant for Brownsville ISD. Edinburg will make their decision in September for a January 1 effective date. Smart money is on Frates with heavy odds.