Mulebriar Proposes 100 Year Rate Guarantee For Texas School Districts

Nothing like a good dose of competition these days. Now, for the first time in over 20 years, Texas school districts have government permission to exit the program. Intense, pent-up competition is hell bent on peeling off as many districts as possible from the government health plan with the potential of earning millions.

It’s the Purple Cow that will win the most business. And who is the Purple Cow? Mulebriar may have a clue.

Partial Email From Molly Mulebriar:

Bill, I’ve been reading your blog this morning and noticed the article describing the astounding underwriting miracle offer to Texas school districts (School District Experiences Underwriting Miracle Offer They Can’t Refuse)

Bound and guaranteed rates nine months in advance of the effective date with a rate guarantee based on limited claim information. A truly amazing underwriting feat!

But I have one better than that. How about a 2 year rate guarantee for Texas school districts? We haven’t seen 2 year rate guarantees in our lifetimes. This is big! Can you imagine the incredible sales advantage one would have in soliciting school business by offering something no one else can, like a two year rate guarantee? Add to that the ability to bind coverage nine months in advance of the effective date and you have an unbeatable offer no one else can deliver.

So I got my hands on a copy of an addendum to an Interlocal Agreement addressing the two year rate guarantee and started thinking “Why can’t competitors copy this addendum and offer a 100 year rate guarantee instead? That would certainly give them a strong, unbeatable marketing advantage!

This is an incredible, brilliant solution to rising health care costs. I’m almost embarrassed I didn’t think of this first.

So I’ve made a few very minor changes to their addendum (see below).

100 Year Rate Guarantee for Texas School Districts

1/1/2022 – 12/31/3022 Interlocal Addendum

1. (NAME OF INTERLOCAL) and ____________________ISD (Member) agree that Member will be a (NAME OF INTERLOCAL) Member for the 100 year period ending 12/31/3022 (Participation Period). The (NAME OF INTERLOCAL) agrees to provide the Member with the same rates by tier and plan for the entire participation period. The Member agrees that District’s contribution remains comparable for the participation period until death do us part.

2. This Interlocal Addendum along with the most recently signed Interlocal Agreement shall represent the entire agreement and may not be amended or altered without the written consent of both parties.

3. If Member terminates this Addendum before the end of the Participation period a cancellation penalty of five percent (5%) of Annualized Contributions for the entire remaining Participation Period will be due from Member and payable to (NAME OF INTERLOCAL) within 30 days after notice of termination is received.

4. Member Opt-Out Clause: If future reinsurance terms cause an unanticipated change in (NAME OF INTERLOCAL) funding model that results in Member rates increasing the Member will have the option to reject the renewal and be released from this Addendum with zero penalty cost.

You may put this on your blog if you believe in sharing. Remember Bill, Sharing is Caring!

– Molly Mulebriar, Investigative Reporter, Waring, Texas