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WESLACO ISD trustees hear consultants’ plans to rein in rising health costs
Summary
At a board workshop, two benefits firms laid out differing approaches — Gallagher emphasized a multi-year consultative plan and carve-outs; Higginbotham pitched a turnkey broker/TPA model that it said can deliver immediate pharmacy savings. Trustees pressed for transparency on fund transfers and timelines for any RFPs.
The WESLACO ISD Board of Trustees heard two outside benefits firms present competing approaches to curb sharply rising employee health and pharmacy costs during an insurance workshop.
Adrian Faria of 1st Public introduced Gallagher’s team and said Gallagher provides contract review, pharmacy analysis and fiduciary oversight for school districts. Gallagher consultants outlined a multi-year strategy that pairs targeted plan-design changes with near-site clinics, pharmacy-contract renegotiation and selective carve-outs. Natalie Haskett, a Gallagher presenter, said the district’s plan gross spend was “about $23,800,000” and that, if multiple levers are adopted, Gallagher’s analysis showed a potential cost-avoidance range in the low millions of dollars over one to two years. “If we do all of these things, we potentially could garner that amount of savings year 1,” Haskett said.
Gilbert Gonzales of Higginbotham told trustees his firm offers a turnkey broker/TPA model that combines account management, enrollment technology and pharmacy-specialty teams. Gonzales said Higginbotham’s pharmacy team has produced “around 30%” savings immediately in some clients and cited average first-year examples of roughly 19% savings in client cases. Gonzales said his firm would perform monthly forecasting, implement clinical-review processes and negotiate rate guarantees.
Trustees pressed both firms on timing, what would be required to meet a possible Sept. 1 effective date and whether the board should issue a TPA-only RFP or hire a broker/consultant first. Consultants said they can run RFPs for TPAs and carriers, provide audit and monitoring services, and partner with the district’s benefits committee and staff. No contracting decisions were made; trustees scheduled follow-up and asked staff to include both options on the upcoming agenda.
The board also raised questions about prior reporting and a transfer from fund balance tied to the health-insurance budget that trustees said they had not seen in monthly reports. District staff said the transfer was recorded in audit reports and would be clarified in the April budget amendment.
