Get Full Government Meeting Transcripts, Videos, & Alerts Forever!

Insurance finance committee recommends switching PBMs for district plans, cites roughly $13 million three‑year savings

July 17, 2025 | Lafayette Parish, School Boards, Louisiana


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Insurance finance committee recommends switching PBMs for district plans, cites roughly $13 million three‑year savings
At a meeting of the Lafayette Parish School Board Insurance Finance Committee, committee members voted to recommend that the full board approve Gallagher's pharmacy benefit manager (PBM) market‑check recommendations: OptumRx for the district's active (non‑Medicare) plan and MedImpact for the district's Medicare‑eligible (EGWIP) retirees. The committee framed the recommendations as a step to reduce prescription drug spending and build reserves in the district health fund.

Gallagher consultant Melody, presenting the firm's market check, said the analysis used actual prescription claims and vendor responses to the market solicitation. "If you had purchased the exact same drugs at the exact same time, with the exact same people with us, this is what it would have cost," Melody said, summarizing the methodology. Gallagher presented a three‑year cumulative comparison that showed an estimated $7 million three‑year savings for the active (non‑Medicare) population if the district moved to OptumRx and about $6 million three‑year savings for the EGWIP (Medicare‑eligible) retirees if the district moved to MedImpact, for an overall three‑year savings figure the consultant presented as roughly $13,000,000.

The committee debated the operational impacts, especially member disruption when formularies change. Melody and other Gallagher staff explained that pharmacy market disruption differs from medical plan changes because pharmacy claims occur much more frequently and are sensitive to manufacturer discounts and formulary tiers. Gallagher's pharmacy team told the committee the analysis identified members who would be positively impacted, negatively impacted or subject to an exclusion (requiring a change to an equivalent drug). The consultant said members affected by formulary or vendor changes would receive notice in advance and that vendors would proactively contact members about prior authorizations or medical‑necessity exceptions.

Committee members pressed for clarifications on several operational points. A board member asked whether specialty drugs were included in the market check; Gallagher staff confirmed specialty drugs were included. Members also asked whether local pharmacies and mail‑order options would remain available under MedImpact; Gallagher said local pharmacies could participate and mail order is available but not required. The committee asked about penalties for terminating a three‑year contract early; Gallagher said there were no penalties that would require the district to pay money to exit within the three‑year term.

Committee members emphasized post‑award oversight. One member, Board member Haddad, said the district had left substantial savings "on the table" for years and urged vendor audits. Gallagher recommended adding vendor audits and a service calendar to hold vendors accountable and suggested repeating PBM market checks every three years. Committee members asked the administration to provide a communication plan for members before the full‑board decision; the committee chair said the committee would request a staff plan when the item comes to the full board.

Formal committee actions were recommendations, not final awards. The committee recorded roll‑call votes recommending OptumRx for traditional (active/non‑Medicare) PBM services and MedImpact for the EGWIP (Medicare‑eligible) plan; both recommendations carried on unanimous committee votes and will be presented to the full Lafayette Parish School Board for final approval.

The committee closed with direction to the superintendent and benefits staff to provide a member notification and implementation plan for the full board, to add PBM and claims audits to the service calendar, and to continue monitoring disruptions and vendor reporting through the remainder of the year. The district will have to manage formulary and vendor transitions between the board decision and the vendors' January 1 effective dates if the board approves the recommendations.

View the Full Meeting & All Its Details

This article offers just a summary. Unlock complete video, transcripts, and insights as a Founder Member.

Watch full, unedited meeting videos
Search every word spoken in unlimited transcripts
AI summaries & real-time alerts (all government levels)
Permanent access to expanding government content
Access Full Meeting

30-day money-back guarantee

Sponsors

Proudly supported by sponsors who keep Louisiana articles free in 2025

Scribe from Workplace AI
Scribe from Workplace AI