Texas School District Fires TRS ActiveCare But Keeps Blue Cross

Chasing nickels and dimes instead of dollars is never a good idea……………..

Mesquite Independent School District, a large employer in the Dallas metroplex, fired their health plan TPA in favor of another but kept the BCBS network. Since 90% of a plan’s spend is tied to claims, and since the network remains the same, the district must have thought they could save money on the remaining 10% of plan expenses. Chasing nickels and dimes instead of dollars is never a good idea.

Since the BCBS provider network remains in place Mesquite ISD claim reimbursement levels going forward will be the same as if they didn’t move administrators. There will be no claim savings. That means no savings on 90% of plan spend.

TRS ActiveCare fixed costs are less than 4% of total spend. Did Mesquite ISD beat that? That’s unlikely because now Mesquite ISD is paying for things they never paid before such as stop loss insurance, brokerage commissions and consulting fees.

Mesquite ISD needs an intervention. Going from one managed care plan to another never saves any money, especially if it’s the same managed care network. Annual cost increases are guaranteed. Nothing changes.

Time stamped at 1:28:34 – 1:32:42 – 4 action packed minutes ending with multi-million dollar award

“The only thing that makes sense is Mesquite ISD believes in magic! In 16 months we will see if something magical happens. We wish them the best of luck!”