By: Ella Brookes
KCBD NewsChannel 11
(In a situation eerily reminiscent of the the BISD vs. HealthSmart lawsuit, the parties in Lubbock have announced they have reached a settlement to end their dispute. Legal observers that the deal will probably be a wash with lawyers for both sides getting the best of the deal. The city originally claimed that it would recover $12 million from the insurer, but industry analysts discount the claim. Likewise, in Brownsville two trustees up for reelection – Rick Zayas and Ruben Cortez – have claimed they will recover $7 million as a result of alleged overcharges. However, industry analysts say that lax oversight and a lack of administrators with expertise in insurance matters and risk management make BISD's claim suspect and the duo's statements mere election rhetoric.)
In a rare Saturday special session, Lubbock City Council is scheduled to vote on a proposed settlement with group insurance businessman Ted Parker.
KCBD News Channel 11 discovered the special meeting notice after hours.
Parker was in charge of ICON/AAG, the city’s health insurance administrator from 2004 through 2006. In 2007 the city sued Parker's company, and accused him of not allowing an audit. At the time, former Mayor David Miller said that AAG might owe Lubbock $200,000. Miller Later upped the claim to $12 million. Parker denies the claim and as said that the city wanted trade secrets as part of its audit.
Parker filed a separate lawsuit in Dallas County against four city officials, including Miller, saying their statements were false. The city officials counter sued at the expense of the City of Lubbock. Parker dropped his suit in Dallas in May but the city officials continue with theirs. If successful, any award would be given to the four city officials instead of the city.
Details of a proposed settlement are not known.
(This posting was dated Oct. 21, 2010. A posting that appeared two days ago on a local blog [Brownsville Voice] stating that FBI agents had raided Lubbock City Hall seeking documents related to HealthSmart misleadingly failed to mention that the story was a reprint. "Story Posted: Thu May 15 06:30:00 CDT 2008 Created: Thu May 15 04:50:44 CDT 2008." An oversight, perhaps? Or a deliberate attempt to poison the DefeatZayasCortezPowers PAC?)
Friday, October 22, 2010
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rita
4 comments:
So in other words Zayas and Cortez used a non issue to stir up voters, the only ones going to make any money on the BISD lawsuit against Healthsmart is Miguel Saldana's law firm Walsh Anderson. Am I on track on this. The big losers are the taxpayers of Brownsville, Zayas/Cortez you are quite a pair.
Get rid of Saldana, Zayas, Cortez and Powers. I understand that Saldana was his (powers) lawyer when he got caught stealing signs.
Are you telling me that Luci, Escobedo and Saavedra will be any different from the rest of the politicos? All you will have is a different 5 member majority who will probably hire Gonzalez back as Super and Juarez as CFO.
Big difference count on it, transparecy,integrity,honesty and hard work for our children and not their pocketbooks like Zayas Cortez and Powers,the facts are the facts.
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