The chief opponent of Gov. Bobby Jindal’s plan to turn over a health plan for state employees from the government-operated Office of Group Benefits to Blue Cross says such a transfer of operations will actually cost state tax payers $154 million, undercutting the chief claim of the Jindal administration that privatizing operations of OGB will be a money saver.
In a press release issued Thursday morning, Rep. Katrina Jackson, D-Monroe, provides the 2013-2014 budget request from OGB to Jindal’s office — a routine request state agencies must make to justify their spending. The four attached documents (reproduced below) demonstrate, according to Jackson, that privatizing the health plan’s operations, is fiscally irresponsible:
Attachment A: Reflects a request for an overall increase for approximately $264,696,853.00 (Line 24) for OGB. This figure has not been explained and therefore, the purpose of the above increase can not be determined nor calculated.
Attachment B: Reflects a decrease by $24,006,450.00 in OGB’s administrative costs and other expenses (Lines 5, 10, 11, 15, and 20).
Attachment C: Reflects an increase of $739,978,762.00 in administrative fee payments to Blue Cross Blue Shield.
Attachment D: Reflects a decrease by $557,670,900.00 in the PPO claims payments and $3,500,000.00 to United Behavioral Health for disease management (Lines 22 and 27 respectively).
Deducting all of the “savings” represented by the decrease in dollar amounts for OGB administrative costs and other expenses ($24,006,450.00); OGB PPO claims payments ($557,670,900.00); and United Behavioral Health payments ($3,500,000.00), from the amount requested to be paid to Blue Cross Blue Shield ($739,978,762.00) shows that there is a net amount of $154,801,412.00 being paid to BCBS without explanation.
This deal will cost the state an additional $154,801,412.00.
“It is not sound fiscal policy to pay more for services while laying off 177 individuals. These documents prove that we are not saving the state any money. We are, in fact, actually requiring the state to pay more,” Jackson concludes.
Last week, appearing before a joint House-Senate committee, Commissioner of Administration Kristy Nichols, seeing that House members would not go along, withdrew the administration’s plan to turn the remaining 62,000 state policies over to Blue Cross. (Blue Cross already administers 164,00 policies in OGB’s HMO plan.) Some Republican House members who were not supportive of the plan were also stripped of key committee assignments in keeping with Jindal’s heavy-handed MO.
According to Gannett’s Mike Hasten, JindalCo. hopes to bring the issue up again on Friday, although Rep. Jackson is challenging the timing of the meeting.
To post a comment, please log into your IND account. If you do not have an account, click the "register" button to create one. Facebook comments can be used as an alternative to creating an account at theIND.com.
OCT 31 The National Journal posts another story from its visit to NOLA, this one about the struggling Vietnamese shrimpers in the area. The publication has been looking at how the state is recovering from Katrina, nine years later.
OCT 31 The New York Times posts this look at Louisiana politics, and how national issues are forcing out the old-time local politicking. Of course they mention EWE, aptly described as an old-time politician known for "charming one half of the state and mortifying the other."
OCT 31 Here's an AP story on the ABC site about Louisiana's chicken little response to an international medical conference planned in NOLA this weekend. Organizers (who are actual physicians, as opposed to the hand-wringing state officials who issued the edicts) say the orders are "unfortunate" given that a main focus of the meeting was Ebola.
OCT 31 Given the things Bobby Jindal has said and done since he's been governor, it's a pretty safe bet he thinks we're a bunch of dummies. Apparently, he's sure President Obama is one, too. This story on Huff Post quotes Jindal as saying the president - a graduate of Harvard Law - should sue to get his money back. (What should a Brown biology grad who doesn't believe in evolution do?)
OCT 31 Us old folks are used to a two-party system, although most of us aren't sold on its success. But what if that system wasn't in place; what if politics reflected the true level of diversity among voters? That's what an LSU student is dreaming of in this editorial. He sees the two parties' control of our politics as limiting.
OCT 31 And you thought the Senate race was dirty. This post on the Forward Now blog tells the story of a Shreveport mayoral campaign worker who was paid to "infiltrate" and "sabotage" an opponent's campaign. Karma's a beeotch, though, because turns out the guy really liked the "enemy," and now he's supporting her. For real.
OCT 30 The National Journal offers this analysis of Bobby Jindal's willingness to stump in any Senate campaign that's not in Louisiana. Why is that? The Journal asks some GOPers and finds that the answer is one we already know: he's so unpopular here, because he's been so busy running for President, that his support might be "toxic."
OCT 30 Blogger Tom Aswell is still all over the OGB mess - and all by himself, apparently. In this post, he's revealing orders from the Jindal administration to destroy records from the state employee health insurance plan. Those orders (he's heard) have angered the Secretary of State and caused an administration lawyer to quit her job. Wow!
OCT 30 A NOLA lady has alleged she was drugged and raped at a Bywater club that had a clothing-optional policy until recently, and she's now become the victim of a smear campaign, columnist Jarvis DeBerry writes in this post. She chose to reveal her story and her name, and she's being punished for that now, he says.
Read the Flipping Paper!
Click Here for the Entire Print Version of IND Monthly