Fresno Unified School District is conducting an audit of retired employees’ marital status and the health insurance eligibility of their adult dependents, retirees told The Bee.
The district launched its audit on retirees’ dependents amid a network dispute that temporarily disrupted health care services for thousands of retirees and their dependents. Retirees last month filed a class-action lawsuit against the district over healthcare plan changes in 2023 they say diluted their benefits.
In January, the state’s third-largest school district mailed a letter to thousands of retired employees asking them to fill out a verification form on a third-party contractor’s website.
The letter asked retirees to upload certain documents proving the eligibility of their dependents under their healthcare plans by April 8 or forfeit coverage for unverified dependents.
The audit is part of an ongoing effort to control costs, according to the school district’s website. Records show that Fresno Unified’s governing board approved a $78,500 contract with BMI Audit Services on Feb. 18, 2025, for dependent eligibility review services related to the district’s health plan.
“Health care costs continue to rise for both employers and employees. One factor contributing to the increase is the cost of covering dependents that are not eligible for plan benefits,” the district said.
Some retired employees questioned the district’s motives for conducting the audit and said it places an undue burden on elderly retirees.
“Hundreds of us are in nursing homes and assisted living facilities where we do not receive mail,” said Emily Brandt, a retired Bullard High teacher. “Many of us are in the midst of severe cognitive decline and cannot speak or even understand, let alone order a marriage certificate online.
“We do not have any records with us where we live, and we have no family or other advocates to alert us to this audit or to guide us through the required process, and we may soon be cast off our insurance or be thrown out of the facility and potentially made homeless.”
Larry Moore, former president of the Fresno Teachers Association, retired in 2008 and said he had no recollection of the district ever conducting any audits regarding the health insurance eligibility of retired employees and their dependents.
Although the contract was approved in early 2025, the audit launched as Aetna Medicare Advantage, Fresno Unified’s insurer, fell into a prolonged network negotiation with Community Health System. The dispute temporarily left retirees with limited or no access to Fresno area’s largest network of hospitals and clinics.
While Fresno Unified has said it had no control over the network dispute, some retirees believe it could have been avoided if Fresno Unified had not changed health coverage in 2023 from the traditional Medicare plus a district-paid self-funded secondary insurance to a for-profit Aetna Medicare Advantage plan.
In response to the public outcry, the district agreed in late January to give retirees the option starting in January 2027 to enroll in a plan similar to what was offered prior to 2023.
A group of retirees remained dissatisfied with the district’s lack of disclosure regarding the details of the transition, as well as the district’s refusal to acknowledge and compensate them for the diluted benefits they have experienced from the insurance change.
Over the past two months, the group sent a complaint letter to Fresno Unified and Brandt filed a class action lawsuit against Fresno Unified on behalf of 6,200 retired employees and their dependents last week.
In the mailed letters and on its website, Fresno Unified’s Benefits Department reminded retirees in bold text not to contact the department, as the audit has been contracted to BMI Audit Services.
“The Benefits Office has been the lifeline to our healthcare for 46 years, suddenly, we are thrust out of their care onto a private company,” Brandt said. “How many of us walk with a walker, get around in wheelchair or cannot walk at all and are confined to the house or facility? How many cannot drive? How many of us have never had internet accessibility in our homes?”
The last dependent eligibility audit was conducted in 2018, though it only applied to active employees, district officials said.
Fresno Unified Benefits Department is unable to provide information as to when the last audit of retirees occurred, according to the district..
The 2018 audit report recommended that 6.06% of dependents be removed from the health plan, according to Patrick Jensen, chief financial officer for Fresno Unified.
“This represents theoretical savings due to cost avoidance of $3,049,608,” the audit report wrote.
Emily Brandt, right, addresses the media with attorney Kevin Little to the left, as Brandt offers an update of the latest FUSD retirees lawsuit over health benefits coverage during a press conference, Friday, April 3, 2026 in Fresno. ERIC PAUL ZAMORA ezamora@fresnobee.com 
Barbara Mendes, right, listens as attorney Kevin Little, center, addresses the media on behalf of the Fresno Unified Retirees Lifetime Health Benefits Association during a press conference, Friday, April 3, 2026 in Fresno. ERIC PAUL ZAMORA ezamora@fresnobee.com
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Leqi Zhong is the Clovis accountability/enterprise reporter for The Bee. She is a graduate of UC Berkeley with a Master’s degree in journalism. She joined The Bee in 2023 as an education reporter. Leqi grew up in China and is native in Cantonese and Mandarin.