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Gallagher tells WESLACO ISD it can target millions in cost avoidance
Summary
Gallagher presenters told trustees the district could avoid millions by combining plan-design changes, pharmacy-contract revisions and near-site clinics; Gallagher gave illustrative figures for current spend and projected trend increases but trustees asked for supporting data.
Gallagher consultants presented a multi-pronged strategy to reduce WESLACO ISD’s projected health-plan trend.
Adrian Faria of 1st Public introduced Gallagher; Natalie Haskett gave the district-specific figures. Haskett said the district’s plan gross cost is “about $23,800,000” and that Gallagher’s reforecasting showed a roughly $4.0 million increase this year compared with the prior budget. On opportunities for cost avoidance she listed near-site clinics, pharmacy-contract language changes, carve-outs for high-cost services and moving toward a TPA model; she said the combined measures could generate “4.1 to 5.5 million” in illustrative cost avoidance in early scenarios if multiple changes are implemented.
Trustees pressed Gallagher on granularity and timeline: one trustee asked whether the $4.1–$5.5 million range meant year-one savings or a multiyear figure; Gallagher said the range reflected an aggressive first-year scenario if multiple changes are deployed. Gallagher emphasized that savings estimates are illustrative and should be validated during an RFP and discovery phase.
Board members asked staff to bring more detailed benchmarking and to ensure any RFP or negotiation protects district reporting and audit rights. No contract award was made.
