Wednesday, September 3, 2014
SCHEME TO TAKE OVER BISD INSURANCE CONTRACT FAILS
By RiskManagers
The Brownsville Independent School District Board of Trustees voted unanimously last night to continue with Blue Cross on a new three year contract. This is the first time in living memory that the BISD has kept the same third party administrator for more than three years at a time. Usually changes are made with each school board election and sometimes even sooner.
Common belief in the insurance world is if you get the BISD account, you are good for a maximum of three years. The BISD +$50 million honey pot draws fierce competition from brokers, agents, TPA’s, carriers, PBM’s, PPO’s and ancillary third party intermediaries.
Competition is good for taxpayers.
During the best and final offer period of the RFP Blue Cross came in with aggressive fixed costs. In addition the BISD insurance consultant went through a re-pricing analysis and found BCBS has “the best discounts”, followed by United HealthCare whose discounts represented an estimated +$4 million higher cost over BCBS for the year according to the consultant.
A postmortem analysis of all proposals received by the BISD would be fascinating.
Among school districts BCBS remains the dominant force in the Lower Rio Grande Valley as well as other political subdivisions such as Cameron and Hidalgo County. La Joya Independent School District Board of Trustees voted recently to go with BCBS for plan year 2014-15.
Since 90 percent of health plan costs are claims, and since many experts believe BCBS has the lowest and best pricing contracts with the provider community, it is a wonder why BCBS does not have 100 percent of the business, 100 percent of the time.
http://blog.riskmanagers.us/?p=16224
This entry was posted on Wednesday, September 3rd, 2014 at 10:28 am and is filed under Uncategorized.
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8 comments:
It would have Been an embarrassment to switch to a new carrier. The current Agent would have received a fresh first year commission in the thousands. The board realized the teachers would have revolted. It is a known fact too that some members Paws are greased with anew carrier in place; furthermore on the plus side BCBS has tons of discounts within the Health industry; since it has been in the business for over a generation in the health -hospital patient relationships .
It is not true what was written by Bill Rusteberg. BISD has kept the same TPA for several years when they were still available. The change to Health Smart the plan that turned out to be a disaster was made only because Mutual of Omaha got out of the TPA business. Before that Prudential had the business for several years and Group and Pension had it also for several years. Health Smart and MMA are the only short term providers.
Seriously???
Very simple . Paws were greased . Pa' que nos hacemos Pendejos !
What scheme are you talking about Juan,? you forgot to mention that part.
Are you referring to Otis, Cesar and Baltazar's scheme? The one they were talking about at Shenegans, how Cesar would make the motion for Assured Insurance, Joe Salazar' baby and Chirinos would second and Minerva and Otis would vote along with them?
Yeap, I overheard the whole conversation.
Would you call this corruption???
Baltazar Salazar is also involved in this scheme. We saw him at Tony Roman having lunch with the vendor from Assured.
This is Minerva's boy for you and the rest of the three idiots chirinos, Otis and cesar.
I would call that the Open Container Meetings Law.
It would have been extremely too obvious to have made that change. Every one knows they are on the take from the insurance vendor; especially when it involve 50,000 ,ooh dollar premium.
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