Financially strapped district leaves +$500,000 on the table
The San Benito Independent School District, located in deep south Texas, has awarded third party administration services to the highest bidder in a recent Request for Proposal process. Estimated annual fixed costs for this 1,533 employee group is approximately $920,000. The lowest bid was $280,000.
By Molly Mulebriar
SAN BENITO, TEXAS – A financially strapped south Texas school district has awarded third party administration services to the highest bidder in a recent Request for Proposal process. Estimated annual fixed cost is approximately $920,000.
The lowest bid submitted included annual fixed costs of approximately $280,000.
The district’s insurance consultant, Nick Long of Gallagher Benefit Services, recommended neither the highest or lowest bid. Instead, the recommendation was Meritain, an Aetna subsidiary with a total annual fixed cost of approximately $455,000.
The Board of Trustees rejected the consultant’s recommendation.
The winning proposal adopted by the Board of Trustees was submitted by three independent insurance agents despite instructions contained in the RFP that no agents were to be involved in the bidding process. According to the RFP all bids were to be net of commission.
The three insurance agents listed as the submitting agents by the winning TPA, Blue Cross & Blue Shield, were Pierre Newkirk, Albert Salinas and Joe Salazar.
Bob Trevino, an insurance agent who did not submit the winning bid, was chosen over the three who did.
The effective date of the contract year is October 1.
The San Benito ISD is in financial difficulty. The district is actively seeking remedies to improve finances, including closing their on-site medical clinic for employees.
See “San Benito Loses Millions of Dollars, Layoffs Forthcoming”:
http://www.valleycentral.com/news/story.aspx?id=1188370#.VeN1JflViko
