Lafayette Parish committee reviews health plan performance, discusses direct contracting and PBM changes

The Lafayette Parish School System Insurance and Finance Committee reviewed a Gallagher executive summary of health plan performance for the fiscal year that ran from July 1, 2024, through June 30, 2025, and discussed steps including a direct-contracting initiative and implementation of a new third-party administrator and pharmacy benefit manager.

Gallagher told the committee the plan’s year-to-date per-member-per-month cost across all classes was $506.47. “All plans are running at $506.47 per member per month,” a Gallagher representative said, summarizing the rolling 12-month results for the committee. Gallagher reported total plan costs for the year just under $60,000,000, retiree contributions of about $16,400,000 and a net cost to the school system — employer contributions plus transfers — of approximately $43,000,482.

The presentation separated membership and costs by class: active employees, retirees without Medicare, and retirees with Medicare (including those on a Humana Medicare Advantage plan). Gallagher said the high-deductible plan ran at about $3,771 per member per month, the PPO basic at about…