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Board splits on hiring a benefits consultant; authorizes RFP for third‑party administrator
Summary
Trustees debated hiring an insurance consultant/broker vs. issuing an open RFP for a third‑party administrator; an initial motion to hire a large consultant failed and the board later voted to authorize an RFP for a TPA and pharmacy benefit manager (4–3).
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The board considered three options to address rising health‑plan costs and claims: continue tweaking current plan levers, hire a full‑service consultant/broker to run procurement and negotiate, or issue an open RFP for a third‑party administrator and pharmacy benefit manager. Trustees were divided over timing, vendor selection and whether an external broker should oversee negotiations.
Trustee Ben Castillo moved to hire a broker/consultant (named in discussion); the motion failed after trustees raised concerns about committee process and the scope of the consultant. Several trustees argued an open market RFP would preserve competition and transparency. A consultant representative summarized that a consultant would issue the RFP, evaluate responses and present options to the committee; a trustee questioned whether the district had already delayed the procurement process too long.
Following debate the board authorized administration to issue a consolidated RFP for a third‑party administrator and pharmacy benefit manager for the district’s self‑funded plan; the transcript records the vote as passing with four trustees in favor and three opposed. Trustees emphasized ensuring committee involvement and that any RFP responses include the servicing representatives for transparency.
As a consultant explained, "As a consultant, we would... issue the RFP. We would evaluate those responses... and then deliver those to the committee," a description trustees cited when weighing options. Several trustees emphasized the need for an open competitive process to ensure best pricing and network options for employees.
