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Board debates $50,000 consultant study to evaluate alternative health plan for classified staff
Summary
Board discussed hiring Gallagher Benefit Services to study a voluntary alternative health plan for classified non‑teaching employees (up to $50,000 at $400/hr). Supporters said the study could reveal up to $12 million in savings; critics urged more stakeholder engagement with the Educators Health Alliance before spending consultant funds.
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Board members spent an extended portion of the July 28 meeting debating a proposed consultant agreement with Gallagher Benefit Services to study the feasibility of offering a voluntary alternative health plan for classified non‑teaching employees.
Blake (presenter) described the scope: an advisory engagement at $400 per hour capped at $50,000 to gather information that would allow the district and employee groups to evaluate an additional health plan option. "So this proposal would help us get information to inform a lot of those discussions as they would go forward," Blake said.
Some board members questioned whether the district had fully exhausted coordination with Educators Health Alliance (EHA), with one member asking why LPS would contract externally rather than pursue changes at the association table. Proponents argued EHA declined to pursue some cost‑sharing ideas and that independent estimates previously suggested substantial savings: earlier estimates showed a $7–8 million potential savings and a more recent figure cited of up to $12 million if certain options were replicated locally. "Up to $12,000,000, that's significant," one board member said in the discussion.
Others raised concerns about bargaining‑unit constraints, the voluntary nature of any new plan, and the need for a clear rubric in the consultant contract. Multiple board members emphasized the engagement is for information‑gathering only; Chair reiterated the district would not commit to offering an alternative plan without employee buy‑in and further analysis. The board did not record a final vote on hiring Gallagher during the discussion; staff said the consultant would produce the concrete information needed before bringing any plan to employees and bargaining groups.

