Did You Read The Contract? Then Why Did You Sign It?

Molly Mulebriar came to our office this morning to report:

“Did Brownsville Independent School District officials, or their representatives, read their insurance contracts? If so, why did they sign them? What’s up with these folks?”

“There appears to me to be a problem with any number that contains a $2.4- something. First it was $2.49 by HealthSmart on a per employee per month basis instead of a charge per diseased member. The BISD is now suing HealthSmart over this in what promises be an expensive and time consuming lawsuit.”

“Now there appears to be a $2.43 credit from PTRX (current BISD Rx vendor) to be paid to MAA (current BISD third party administrator) to be credited against future payments by BISD.”

“Under an Open Records request, I read an email from a representative of BISD that said  – “Since we wanted one contract, the credit shown for PTRX is paid to MAA which is then credited against future payments……we will be monitoring the cash flow, as opposed to not being reimbursed.”

“However, upon closer review of the contract executed between MAA and BISD for the contract year beginning October 1, 2009, there does not seem to be an indication of this credit anywhere. Further, a review of the Board Packet upon which the Board of Trustees based their decsion to award the $50 million health contract, and the actual executed contract, there are  material differences as best I can determine.”

“Isn’t the definition of insanity is doing the same thing over and over again and expecting different results?”

Editor’s Note: Mulebriar has spend hours reviewing material obtained from the BISD through several Open Records Requests. The documentation raises questions about the current BISD program. Cross referencing documents produces descrepancies of note in our opinion.

The Board of Trustees would be wise to hire an independent outside auditor (again) – this time to investigate the current program’s financials and contracts. We feel they have a fiduciary responsibility to do so.

See previous postings on the continuing BISD insurance saga: http://blog.riskmanagers.us/?p=4087, http://blog.riskmanagers.us/?p=4035