RISD superintendent’s insurance company settles lawsuit against Penitas
BY ALLEN ESSEX – Staff Writer – March 19, 2025
A Jan. 28 lawsuit filed against the city of Penitas by ESC-100 Executive & Consulting Services, LLC to collect unpaid fees for handling the city’s group medical insurance claims has been settled, said Gustavo Acevedo, attorney for the company.
ESC-100 is a healthcare consulting firm which assists governmental entities in the state of Texas to reduce employee healthcare costs and to ensure the governmental entity’s employee benefits plan is compliant with all federal and state regulations, while also addressing the needs of the entities’ employees, the legal petition states.
The city entered a contract with ESC-100 in August 2024 “to provide health insurance consulting services for the city’s employees.”
“These services consisted of but were not limited to the direct payment to medical providers for claims incurred by the city’s employees,” the lawsuit states.
“ESC-100 submitted invoices for the months of August and September 2024 requesting payment for services rendered for the services performed and reimbursement for the claims paid to medical providers but the city refused to honor (the city’s bill of $36,117.22) sent Nov. 4, 2024,” the lawsuit states.
The company sued the city for breach of contract. The lawsuit also demanded payment of the company’s attorney fees.
Acevedo said Monday the lawsuit has been settled amicably and ESC-100 filed to have the case dismissed.
Acevedo represented Stetson Roane and his insurance company in the case and has represented the Raymondville school district for several years.
Among other public entities, ESC-100 sells employee group medical insurance to the city of Raymondville to cover its employees but does not cover Raymondville school district employees, former deputy Superintendent Ben Clinton said last year.
Clinton is now superintendent at Mercedes ISD.
Looks like the City of Penitas is playing Musical Chairs – They move from the TML Health Plan to Assured Benefits brokered by ESC100. Then they terminate that plan and go with Curative Insurance Company.
The City of Penitas new slogan should be “THE GREAT TERMINATOR”
September 6, 2023 Agenda Item 8-B – TML Health Plan
September 4, 2024 Agenda Item 8-C – Curative Insurance Company
