Texas School Districts – Insurance Fraud & Political Empowerment


“No problem Joe, I’ll make a call for you”

By Bill Rusteberg

Texas school districts provide access to health insurance for employees and their families. State taxpayers underwrite a portion of the cost while employees and local taxpayers fund the rest. In many cases the employees bear most of the financial burden.

Health insurance is expensive. A family of four in Texas may pay $1,000 or more per month for less than stellar benefits. A teacher earning $45,000 a year cannot afford a $12,000 health insurance price tag for his family. Many families forgo full coverage, hoping they won’t need the coverage when they need it the most. It is endemic in communities throughout Texas, impacting working families everywhere.

The truth of the matter is less than dismal as many uninsureds within a community are at peace knowing they have a safe harbor waiting for them in times of dire medical need. They have come to learn that elected school board members hold the key to immediate health care coverage for loyal constituents, or soon to be loyal constituents. Friends and neighbors can attest.

Under ObamaCare, all pre-existing conditions are covered immediately. No waiting periods. School board trustees have come to realize this provides tremendous opportunities to solidify their base and increase their markers for future favors around election time. For some, it even provides a means to enhance political contributions year round. Leveraging political power outweighs ethics. The Duke of Duval, George Parr, was an early Texas adopter.

Here is how it works. Joe Smith works as a self-employed mechanic in town. He has no health insurance. He gets sick, and is diagnosed with cancer. He cannot afford treatment and the ObamaCare public exchange open enrollment period just expired. Besides, he could not afford that anyway. So Joe goes to John, local school board member and cries for help. “No problem Joe, I’ll make a call for you” says John.

John calls the school superintendent and says “Henry, my good friend Joe Smith, a mechanic here in town, is looking for a job. He is an excellent mechanic. Can you see if we can get him a position at the bus barn. He can start tomorrow! I really appreciate your support. I will return the favor one day.” The superintendent, knowing John represents a majority on the board, knows which side his toast is buttered.

By the end of the week, Joe Smith is working full time for the school district. Health insurance coverage begins the first day of full time employment. Pre-existing conditions are covered immediately.

After $100,000 in health benefits, Joe is in remission. He quits his job at the district and goes back to his little shade tree mechanic business on the west side of town. John visits him to see how he is doing, asking about his family, his health, and wishing him well.

The marker has been set.