After learning that it won't fulfill its obligations and that it may cost district taxpayers millions of dollars, the county of El Paso Texas and one of its school districts are taking into consideration replacing their health insurance administrator.
This year both officials of Ysleta Independent School District and the county, hired Foresight TPA as their third-party health administrator, and have both begun steps to replace Foresight TPA.
While they will look for additional options in the form of a third-party administrator, Ysleta trustees voted to remain with Foresight TPA for the time being. The cost to citizens, if the district decides to remain with Foresight through 2009, will be an additional $2.35 million.
On Thursday, the County Commissioners Court decided to reconsider bids for a 2009 health insurance administrator.
It is the resolution of a contractual dispute with Tenet Hospital Corp., which runs Sierra Providence East Side Hospital, and the El Paso's Providence Hospital, and Sierra Medical Center that has made possible the departure from Foresight TPA.
The resolution states that according to documents, employees of the county and school district who use the company's services will have to pay all billed charges not covered by benefits if Tenet is not listed as a primary hospital option.
Employees pay only a percentage of a negotiated rate under the current plan.
Two of the largest remaining local governmental entities to contract with Foresight TPA, are Ysleta and the county. Foresight TPA was formerly Access HealthSource.
Meanwhile, last year after Access HealthSource and Frank Apodaca, its former president and CEO, were listed as targets in the FBI's public corruption case, Ysleta sent a request for new bids for a third-party administrator. Up to the present time, no charges have been filed against Access or Apodaca.
Ysleta Trustee Liza Montelongo has said that in 2005, Access was not able to meet their contractual promises. This, she says, cost their district millions of dollars, which in the end, at the time, led to programs being cut and affecting the school district’s students.
Montelongo says that in 2008, the same problems are arising. Again Foresight TPA/Access is not able to deliver what they had promised and, in her personal opinion, lied in order to get the contract. She says that it is her emphatic belief that the time has come for a change and to move on so as to ensure that the employees needs will be protected and it will not be at the expense of the students.
Foresight TPA officials, who the county commissioners said are in the midst of the sale of their company, refused to comment.