The following is a true story………….
A South Texas public school district tries new risk management strategy designed to reduce costs by reducing costs….. while keeping benefits exactly the same.
By Molly Mulebriar
A Texas school district has grabbed the attention of risk managers nationwide for their daring attempt to solve the high cost of health care in ways never thought possible before.
“Our costs are skyrocketing! Prescription drugs are out of control! Our medical plan is imploding, reserves are down, we must do something!” cried the district’s CFO.
“Let’s do the opposite of what works” hissed the custodian from the back of the room.
“What a novel idea! Let’s lower our costs by reducing plan contributions and keep everything else exactly the same” said the CFO.
So they reduced plan contributions while keeping the same benefits.
“And let’s hire that Me Too guy who has more school district clients than you can shake a stick at” panted Mary the school nurse. “He must be good since so many districts use him!”
“Yes, a used broker who’s been used!. Let’s do it!” cried the CFO
And so they did.
Will the district succeed in reducing costs by reducing costs….. while keeping benefits exactly the same? Only time will tell.
Molly Mulebriar is an investigative reporterette from Waring, Texas and former 1980 Miss Texas contestant and winner of the 2021 Texas Jalapeno Eating Championship. Her upcoming book “My Life As A Mexican Bullfighter” is scheduled for release in August.
If they want to “define” and control contribution, ICHRA is the vehicle. But districts aren’t going to get away with $250-350 contributions much longer. The only way to do that is to exclude specialty Rx and to absolutely limit reimbursements to Medicare, no exception. …and they’ve crapped on that. Two choices and they have said no to one (TRSAC). ICHRA is the only alternative if they want their cake and eat it too, if they want to control contributions while not accepting accountability. – JB
Sounds like Everywhere ISD. – HKS
Every Texas school district should try this. What better way to reduce costs by paying less. – LS
This is a true story so unbelievable it challenges primal understanding. – Bill Rusteberg
