The Amarillo Independent School District Board of Trustees held a 7 a.m. meeting Monday, Nov. 3, at the Rod Schroder Center, focusing primarily on the district’s ongoing health insurance challenges for employees. The session also included a closed discussion related to two pending lawsuits involving the deaths of two students, after the district’s motions to dismiss those cases were recently denied.
The early portion of the meeting addressed developments in litigation tied to the deaths of 10-year-old Emerson Kate Cole and 14-year-old Jaxson Mendoza, both of which are now moving forward toward trial in federal court. The U.S. District Court for the Northern District of Texas previously rejected the school district’s efforts to have each case dismissed, allowing claims under Title II of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act of 1973 to proceed.
Student Death Lawsuits Move Toward Trial
The first case was filed by the mother of Emerson Kate Cole, who alleges that her son experienced a fatal allergic reaction at Lorenzo de Zavala Middle School. The lawsuit, filed July 31, 2024, claims that staff failed to take necessary steps to manage the medical emergency in accordance with the child’s documented medical needs. Cole later died as a result of the incident.
The second lawsuit was filed by Apryl and Gavriel Mendoza regarding their son, Jaxson, who collapsed during athletic activity at Amarillo High School on August 24, 2022. According to the complaint, the student experienced multiple seizures and did not receive his prescribed seizure medication in time. The Mendoza family argues that this failure contributed directly to his death the following day.
Both lawsuits argue that Amarillo ISD failed to provide appropriate accommodations required under disability protection laws. They contend that the district did not meet obligations to ensure that students with documented medical needs received necessary care. These claims rely on federal disability law standards that require public institutions to provide reasonable accommodations and remove barriers to equal access.
Amarillo ISD sought dismissal of both cases by asserting that the plaintiffs did not sufficiently establish legal grounds to prove a violation of federal disability statutes. The district argued that the claims did not demonstrate deliberate indifference or systemic failure under the requirements of the ADA and Section 504. The district’s filings referenced expert evaluations related to school nursing practices and medical protocols, including reports authored by nurse consultant Monica Porras.
However, U.S. Magistrate Judge Lee Ann Reno determined that, at the dismissal stage, the court is required to evaluate only whether the plaintiffs have presented allegations that could plausibly support a claim if proven. The ruling emphasized that dismissal is not appropriate when the facts alleged could support a legal remedy when examined at trial. As a result, both cases are now set for jury trials. The Mendoza case is scheduled for April 13, 2026, and the Cole case is set for February 2, 2026, both in Amarillo’s Mary Lou Robinson United States Courthouse.
The Amarillo ISD Board discussed these cases in closed session with legal counsel Monday. Board members did not provide public comment following the discussion, stating that the district does not comment on active litigation.
Insurance Challenges Lead Meeting Discussion
The majority of the meeting focused on the district’s employee health insurance program and growing concern regarding rising medical claims costs. Chief Financial Officer Daniel West reported that the district recently made multiple requests for fully funded health insurance plan proposals but received no bids from providers. A fully funded plan would shift risk from the district to an insurance carrier, as opposed to the self-funded structure currently in use.
Amarillo ISD’s insurance plan is currently administered by Insurance Management Service (IMS), a local firm that replaced Blue Cross Blue Shield as the district’s third-party administrator. According to discussion during the meeting, district officials and some community members have expressed concern that average claim payouts have increased significantly since the change in administration. The causes for this increase were not directly attributed during the meeting, but the rising costs have become a central concern in the district's budgeting process.
Insurance costs have been a point of scrutiny in the district before. In 2020, former Amarillo Mayor Jerry Hodge and Fairly Group CEO Alex Fairly filed a lawsuit alleging that the district’s health coverage contracts were selected without full evaluation of available options. The lawsuit argued that the contracts resulted in unnecessary expenses for the district and local taxpayers. That lawsuit was settled out of court, but the concerns it raised continue to shape local discussion about the district’s insurance decisions.
Exploring TRS as a Potential Option
As part of the search for alternatives, district staff reached out to the Texas Retirement System (TRS), which administers a statewide health insurance program used by many school districts. According to information shared during the meeting, TRS indicated that it can provide Amarillo ISD with access to its insurance plan beginning September 1, 2026. However, TRS would require the district to commit to joining the plan months in advance, before a cost estimate is provided.
This uncertainty has contributed to hesitation among board members and administrators. District Benefits Director Nicole Murphy stated that while TRS is required under state law to offer access to the district, it does not have to disclose pricing prior to the commitment deadline. TRS currently serves more than 800 school districts across Texas, making it one of the largest public employee group health plans in the state, though experiences and cost levels vary widely.
District officials emphasized the difficulty of balancing affordability for employees with the district's financial stability. In a self-funded plan, the district pays directly for employee medical claims and bears the risk of claim costs exceeding projections. The rising cost of medical services and the unpredictability of expensive medical cases have contributed to financial volatility for many school districts with self-funded systems.
West stated that the district expects to receive new fully funded insurance proposals from private carriers by November 14. These could include major providers such as Blue Cross or Aetna. If a viable plan is identified, the district may need to call a special meeting before the next scheduled board session in December to consider the proposal.
Looking Ahead
Monday’s meeting highlighted two complex and ongoing challenges facing Amarillo ISD. The federal lawsuits will likely draw continued public attention as they proceed toward trial, particularly due to the emotional impact associated with the deaths of two students. Meanwhile, the district’s insurance situation reflects broader national issues surrounding rising healthcare costs and the difficulty many employers face in securing stable and affordable group health coverage.
As the district moves forward, decisions regarding health insurance will likely play a central role in financial planning, employee retention, and negotiations regarding compensation. The board is expected to review additional insurance proposals later this month and continue discussions at its December meeting.
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