School committee approves three-year administrative-services agreement with Blue Cross and WB Community Health

The Chariho Regional School Committee on July 15 approved a three-year administrative services agreement with Blue Cross/Blue Shield of Rhode Island and WB Community Health covering July 1, 2024, through June 30, 2027, to preserve prescription rebate revenue the district built into its budget.

Superintendent Gina Picard framed the request as largely procedural and budgetary, saying the agreement preserves a “million dollar prescription rebate” the district included in its FY26 budget. District staff and representatives from Blue Cross and WB explained the contract delay had been legal and technical rather than operational and that no employee coverage was interrupted while the contract was under review.

The committee heard a process briefing on how the district would decide whether to issue an RFP to solicit a new third-party administrator. John (staff member) said the normal approach would be to issue an RFP scored on cost, service and experience, and that the district should consider hiring an independent health-care consultant or broker to advise the committee. “If we do move forward, you're going to have an expense to hire a consultant or a broker,” John said.

Sarah Mangirelli of WB Community Health described how pharmacy rebates are treated for Chariho: “Any pharmacy rebate revenue earned by Chariho goes back 100% to benefit Chariho,” she said, explaining that rebate receipts are applied when calculating the district’s net working rate for health benefits. Mangirelli also acknowledged the timing problems that delayed finalizing the consolidated contract document and said Blue Cross agreed to give annual amendments 30 days before the fiscal year going forward.

Committee members pressed staff on timing and budget impact. Greg (staff member) said the district had budgeted conservatively for health-insurance increases and planned to use rebate revenue to replenish the health-care fund balance and limit rate increases. He described prior fiscal years’ health-care increases and one-time uses of the fund balance in FY23 and FY24 to stabilize the budget.

After discussion, the committee voted to approve the three-way contract so the district would continue to receive pharmacy rebate payments and avoid interruptions to the program. The motion carried; one committee member abstained.

What happens next: staff said they will continue to monitor rebate payments and that the RFP process to select a third-party administrator would be a separate decision requiring its own agenda item and, if pursued, would likely include consultant support to evaluate proposals.