Insurance consultant sues Peñitas for nonpayment

Insurance consulting company ESC-100 Executive Consulting Services sued Peñitas last month alleging the city failed to pay it tens of thousands of dollars for work performed last year.

 

According to the suit, the city of Peñitas hired ESC-100 Executive Consulting Services in August.

 

The company, which is owned by Raymondville ISD Superintendent Stetson Roane, assists governmental entities in the state of Texas reduce healthcare costs and ensure benefits plan compliance with regulations, the suit says.

 

Attorney Gustavo Acevedo, who represents ESC-100, describes it as a small outfit that performs a level of service big box firms don’t.

 

 

“What they do is essentially help with the healthcare,” he said. “Pay claims, administer claims, get the employees on special plans if they need special plans. It’s just like any health insurance company.”

 

According to Acevedo, ESC-100 does work for the city of Raymondville, Sullivan City and some small school districts, though not Raymondville ISD.

 

The suit says ESC-100 did good work for the city of Peñitas in August and September before the city parted ways with the company.

 

According to the suit, Peñitas racked up a $36,117.22 tab with the company.

 

“It’s a small operation. Every dollar counts,” Acevedo said.

 

ESC-100 invoiced the city but, it says, never received a response.

 

“I was not contacted by anyone with the city or their lawyer. We wanted to try to work that out,” Acevedo said. 

 

As of Thursday, the city doesn’t appear to have been served with the suit and hadn’t filed a response.