LPSB Insurance Guru: Prescription Drug Expenses a Problem

Almost all the deficit problems now being experienced with the Lincoln Parish School District medical/drug benefits plan is a result of the high price of prescription drugs, rather than medical side of the plan, according to Brown & Brown’s David Charpentier, who serves as a consultant for the district.

Charpentier addressed the Finance Committee of the Lincoln Parish School Board (LPSB) at last night’s meeting.

Said Charpentier, “The good news is that it’s not really caused by the medical side of the plan. The medical side of the plan is actually, if adjusted for the fluctuation in the number of lives – flat. Relatively flat. The problem is in the prescription side of the plan.” He added, “Just as a general statistic, your prescription plan when benchmarked against your peers is running 50% above what the benchmark is. Whereas your medical plan is running below the benchmark.”

He noted that the cost trend in drugs is upward, and there are more specialty drugs which are generally more expensive than the norm.

Charpentier’s recommendations are in this memo.

The committee and the full board approved the recommendations.

In other business, the board heard from Grambling High Foundation President Gordan Ford, on the status of Grambling Lab School’s application for charter status.

Ford said that the foundation would be operating the schools on behalf of Grambling State University for the 2015-2016 school year, and that the Board of Elementary and Secondary Education had conditionally approved that plan.

The schools would become full-fledged charter schools for the 2016-2017 year, Ford said.