Gallagher tells Lafayette Parish committee health plan ran a multi‑million dollar shortfall; consultants outline fixes

The Lafayette Parish School Board Insurance and Finance Committee on Feb. 11 heard Gallagher consultants present a year‑end financial monitoring report showing the district's self‑funded health plan had higher claims than current funding, and a set of near‑term actions including rate projections and an RFP process for plan vendors.

Tony Murray, a consultant with Gallagher Insurance, told the committee "The absolute total, the total health plan cost is $60,708,216," and said the plan as funded by premiums shows about a $6,000,000 deficit but that after prior‑year fund balance and a July transfer the plan would show roughly a $2,000,000 surplus.

The report matters because the committee must recommend budget and contribution decisions before the July 1 plan year. The consultants identified class‑level cost drivers and told the board the district should expect more detailed forecasts and vendor work this spring.

Gallagher presented both plan‑year (Jan.–Dec.) and fiscal‑year (July–June) views. On a fiscal‑year basis through December, Gallagher reported total health plan costs of $36,762,390 and a net employer cost to Lafayette Parish School System (LPSS) of $28,786,802. Murray said that, "when we're…