The El Paso Independent School District’s Self-Funded Health Plan Implodes……………Again

The El Paso ISD self-funded health plan is in trouble again. The plan relies on the belief that doing nothing is better than doing something. Instead, they continue to place blind hope on the CIGNA network of “preferred” providers because they believe PPO networks save money when everyone in the industry knows the opposite is true.

Plan funding doesn’t cover risk and expenses. Whoever recommended these funding levels missed the mark by a margin that’s hard to write home about.

The district has an interesting history. Comatose trustees of years past practiced the only risk management strategy that made sense at the time by running away from their failed self-funded health plan faster than a melting raspa to the TRS ActiveCare government health plan.

Subsequently they switched back to a self-funded plan under the apparent understanding “the more you pay, the more you save and the more you save, the less you pay.”

The insurance consultant for EPISD is HUB. Their EPISD Consulting Agreement expires June 2026. There is no public record the district has renewed the agreement.

The article below is another chapter in an ongoing Novela with a predictable ending.

Auditor warns El Paso ISD health insurance fund is $19 million short amid deficit

May 21, 2026 SOURCE: KFOX TV- El Paso

EL PASO, TEXAS (KFOX14/CBS4) — As the El Paso Independent School District grapples with a $52 million budget deficit, district leaders are also facing concerns about the long-term stability of its employee health insurance fund.

EPISD is facing a $52.8 million budget shortfall for the current 2025-2026 budget year, leaving the district with about 38 days left in its fund balance, described as the district’s “piggy bank.” Next school year is projected to be even worse, with a $42 million deficit and fewer than 12 days of savings. While district officials have until the end of June to balance next year’s budget before the school board can approve it, more questions are being raised about how the deficit will impact students and staff.

During EPISD’s Board of Trustees meeting on Tuesday, it was noted that the district’s health insurance fund is not sustainable.

Lori Boswell, a third-party auditor at Moakcasey who was hired by the district after it discovered its budget issue, told board members the health insurance fund is $19 million short.

“I didn’t do a deep dive into your health fund, but I can tell you on a high level right now that you’re not bringing in enough revenue to offset the claims.”

Boswell said the district has been transferring money from its general fund to cover, and that fund now owes the general fund $19 million.

In response to the $19milllion shortfall, trustee Daniel Call said, “That’s a problem…right now we are on track, if we don’t do something insanely drastic, we’re going to be down to 11 days in fund balance by the end of next year not including the $19 million that were essentially short on our health care fund.”

Boswell noted that Call is correct, stating that the district’s 11 days of fund balance do not include this deficit.

The district has no business being self-funded. They lack the financial discipline necessary to properly manage a self-funded health plan. They should beg TRS ActiveCare to take them back with a 40% premium load and be happy. Or, better yet, they should establish an ICHRA plan.