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Gallagher warns Lafayette Parish health plan faces roughly $7M shortfall; committee weighs savings options
Summary
At an April meeting of the Lafayette Parish School Board Insurance and Finance Committee, Gallagher consultants presented actuarial projections that place the district’s health plan near a $70 million plan-year cost and outlined cost-saving initiatives and market checks aimed at reducing a projected budget shortfall.
The Lafayette Parish School Board Insurance and Finance Committee on April received a presentation from Gallagher showing the district’s self-funded health plan is projecting roughly $70 million in plan-year costs and recommended several market checks and plan design changes to close a multi‑million‑dollar gap.
The report, delivered by Melody Terrell of Gallagher, found the plan’s recent 7‑month claims average was $516.94 per member per month and that an actuarial projection, accounting for medical and pharmacy inflation, yields a plan-year budget near $70,000,000. “Inflation is the, cost of medical goods and prescriptions,” Terrell said, noting national trend factors of 7.5% for medical and 13% for pharmacy were used in projections.
Gallagher told committee members the district is currently funding about $57,000,000 through premiums, plus a $6,400,000 general fund transfer, for total funding of roughly $63,000,000; that leaves a funding gap…
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