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.
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NOV 21 Bobby Jindal is headed to Iowa again, the Des Moines Register reports here. The paper outlines what's going on with Bobby's non-campaign for president, and there's a lot of stuff here -- too bad none of it sounds like somebody running Louisiana. Hey, wasn't that the job he wanted?
NOV 21 The end of the term has come for the grand jury investigating a lucrative Medicaid contract and a former state health official's ties to the company that won it, the Advocate reports here, but that doesn't mean the investigation into this stinkiness is over. There are still some things to look into, the lead prosecutor says.
NOV 21 With the passage of two amendments to Louisiana's much-amended constitution (it has been amended almost 200 times now) higher education has an even bigger target on its collective back, columnist Jim Beam opines in this post. Higher ed used to share the spotlight with health care, but that has changed, he says.
NOV 21 Here's a weird one: The Louisiana Cannabis Industry Association has endorsed Bill Cassidy for the U.S. Senate. Apparently, Mary Landrieu said she wouldn't consider support of medical marijuana but Cassidy said he would, WWL reports here.
NOV 21 Solange Knowles, possibly best-known for assaulting her brother-in-law in an elevator while wearing an ugly dress after the Met Ball, got married in the Marigny Opera House this past weekend, the New York Times reports here. Knowles, who has a house in the Faubourg Marigny district and owns a boutique in the Quarter, married Alan Ferguson.
NOV 21 This post on the Fuel Fix blog outlines a $1.4 billion move announced this week by the Apache Corp. that includes the sale of assets in south Louisiana. The company's interests in more than 90,000 acres in south Louisiana are some of the assets being sold, the post reports.
NOV 21 One (possible) positive from Hurricane Katrina is a comprehensive zoning ordinance for New Orleans. Nine years later, we're getting closer to that being finalized, but the current version has some problems. Here's the latest in a series of posts on The Lens in which residents give their views of the draft; this one is more amusing than most.
NOV 21 The new NOLA smoking ordinance is going to harsh your (nicotine) buzz, man. This post on Gambit outlines the high (or low, as the case may be) points: it includes electronic cigarettes and hookahs in its bans; eliminates smoking within 25 feet of any building's public entrance and in any public space - or near any public space - operated by the city.
NOV 20 Politico reports here that Bobby Jindal won't be kept out of the presidential race by anyone else's candidacy. (If he's running, which he's not, 'cause he's not done prayin' on it) So he's not interested in who is running, or what the polls say, or how much money he's got? K.
NOV 20 NOLA Defender's Tiny Daiquiri has a little fun with Bobby Jindal's Meet the Press appearance in this post. Bobby is still prayin' on whether or not he'll run for the job he's been running for over the past three years, Tiny says.
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