The rumor mill within local legal eagle circles indicates that HealthSmart Inc., – the insurance providers shunned by the BISD board in favor of Oklahoma-based Mutual Assurance Administrators, Inc. to service a $40 million account as third-party administrator of the district’s self-funded group health insurance plan – will more than likely sue the BISD in a Dallas courtroom.
On Aug. 12, trustees awarded that contract for the 2009-2010 to MAA for $181,275 per month.
The day after the meeting, HealthSmart – currently serving the district – complained that its
contract renewal efforts did not receive fair consideration by the district’s Employee Insurance Committee or the Board of Trustees.Now, apparently, HealthSmart has decided that merely trying to convince the iron-clad 4-3 majority (Gang of Four), will not bear fruit and will seek redress in a courtroom.
HealthSmart’s contract – at $196,000 per month – expires Oct. 1. Already, its rival is signing up employees as BISD transitions to the new third party administrator. The BISD board unanimously agreed to direct interim superintendent Brett Springston to prepare an action item for the Sept. 15 meeting proposing the contract process be audited.
Sources close to the board indicate that HealthSmart has in its possession documents issued by district representatives dated as early as February and June which purport to show that the Gang of Fourt had already decided to change TPA months before tthird-party administrator of the district’s self-funded group health insurance plan months before the August vote on the contract.
These sources also say that the four votes on the majority – board President Rolando Aguilar and Trustees Joe Colunga, Ruben Cortez Jr. and Rick Zayas – were acting in concert to award the lucrative contract to the company brokered by local insurance mogul Johnny Cavazos.
Dr. Enrique Escobedo, Catalina Presas-Garcia and Minerva Peña voted against it.
As a result of awarding the contract to MAA, Cavazos' commission at 10 percent will total more than $3 million.
"Ask Rick Zayas now what he meant by 'It's All About the Children,'" quipped a local BISD employee. "It seems like it's more about Cold Hard Cash for Cavazos."
1 comment:
What is disappointing about this is that these guys do not care, about how much their irresponsible actions, for their own financial benefits, affects our school district.
What audacity for them to pratically fire our Superintendent just for the sake of making money for their friends. Mind boggling to me that we are not running these guys out of Brownsville.
Do we not care, does it not affect us, have we no self respect as tax payers and citizens.
It is time for us to say this is enough, unacceptable.
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