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Archive for the ‘State Agencies’ Category

Back in the spring of 2011, LouisianaVoice predicted that higher premiums and reduced benefits would by the immediate by-product of privatization of the Office of Group Benefits Preferred Provider Organization (PPO).

The administration initially—but only temporarily—proved us wrong by reducing premiums as the lead-in to contract with Blue Cross/Blue Shield of Louisiana as the third party administrator for the PPO.

If we wished to be vain about that move, we could have said that Gov. Bobby Jindal made that move just to prove us wrong. But it wasn’t nearly as simple as that; there was, in fact, a far more sinister reason for the premium reduction.

Because the state pays 75 percent of state employees’ premiums, cutting those premiums reduced the financial obligation to the state, thus allowing Jindal to divert money that normally would have gone to health care for some 230,000 state employees, retirees and dependents to instead be used to plug gaping holes in what has become an annual budget shortfall, thanks to slipshod management of state finances by the governor.

The recent developments pertaining to impending radical changes that will force eligible retirees onto Medicare and out of Group Benefits are not about who is right and who is wrong; it’s about people. It’s about people like you and me (yes, I’m a state retiree who is one of the lucky ones who is eligible for Medicare by virtue of my hire date after April 1, 1986 and by virtue of some 25 years of newspaper reporting work in the private sector).

In all the rhetoric coming out of the office of Kristy Nichols, the people she and her boss serve appear to be the forgotten element as Jindal has become a 100 percent absentee governor while he chases the impossible dream of becoming POTUS.

FAQs

Tragically, retirees with no private sector experience and who began with the state prior to April 1, 1986, are ineligible for Medicare and the steep premium increases looming on the near horizon—open enrollment is Oct. 1 through Oct. 31—can mean only one thing for them: financial devastation. A new premium increase to go with the one that took place on July 1 is scheduled to go into effect Jan. 1, placing an additional financial burden on enrollees.

Of course, if you look back, you will see how the administration fed us a string of outright lies in 2011. Thanks to loyal reader Kay Prince of Ruston, we have a copy of a letter written by then-Commissioner of Administration and who later served as Jindal’s Chief of Staff until his unexpected resignation last March which can only be described as a laundry list of lies to state employees and retirees.

Read the text of Rainwater’s letter here: https://www.groupbenefits.org/portal/pls/portal30/ogbweb.get_latest_news_file?p_doc_name=4F444D324D5441344C6C4245526A51344E7A413D

If one has to wonder where this latest political assault on state employees originates, one has only to Google “ALEC Health Care Agenda” for the answer.

HHS_2013_SNPS_35_Day

ALEC, of course, is the acronym for the American Legislative Exchange Council, the non-profit political arm of the Koch brothers and the Walton Family of Wal-Mart fame. ALEC, which drafts “model bills” for its member legislators to take back home for passage, includes sweeping changes to health care benefits for public employees as one of its primary objectives.

While we don’t normally advocate political boycotts, perhaps state employees should give serious consideration to a complete boycott of Wal-Mart and Sam’s Club as a response to the ALEC-inspired medical benefit cuts you are about to experience. A word or two to friends and relatives might not be a bad idea either.

For a comprehensive look at the ALEC agenda as it pertains to medical benefits, go here:

http://www.alecexposed.org/wiki/Health,_Pharmaceuticals,_and_Safety_Net_Programs

Here is a list of Louisiana legislators, both present and past, who are now or once were members of ALEC. http://www.sourcewatch.org/index.php/Louisiana_ALEC_Politicians

Girod Jackson (D-Marrero), who was charged with fraud and failure to file taxes, resigned and is no longer in the legislator and it is our understanding that Sen. Bob Kostelka (R-Monroe) is no longer a member of ALEC.

And certainly, let’s not forget that until recently, BCBS was a member in good standing of ALEC and BCBS was listed as a member of ALEC’s Health and Human Services Task Force and ponied up $10,000 for a “Director” level sponsorship of ALEC’s annual conference held in New Orleans at which Jindal received the organization’s Thomas Jefferson Award. BCBS of Louisiana paid an additional $5,000 and served as a “Trustee” level sponsor of that 2011 conference.

And ALEC continues to have its logo prominently displayed on the Louisiana Legislature’s web page. http://www.legis.la.gov/legis/OtherGovSites.aspx

Despite all the spin from Kristy Nichols, the Aug. 11 report to the Joint Legislative Committee on the Budget by the Legislative Fiscal Office paints a much truer picture of what’s in store for members.

Read the LFO report here: LFO_OGBReport_August_2014

Apparently, the working media also do not buy into the Kristy Kreme version of “it’s all good,” as the proposed changes are attracting the attention of Capitol reporters like Melinda Deslatte, a very capable reporter for Associated Press: http://www.shreveporttimes.com/story/news/local/louisiana/2014/08/26/health-benefit-changes-planned-state-workers/14651363/

As a barometer of just how serious the proposed changes are and the impact they will have on members, House Speaker Chuck Kleckley, apparently in response to the request of State Rep. John Bel Edwards (D-Amite) is apparently willing to buck Boss Jindal and call a special meeting of the House as a Committee of the Whole as reported here by the Baton Rouge Advocate’s Marsha Shuler: http://theadvocate.com/home/10100116-123/house-group-benefits-meeting-possible

Undaunted, Nichols trudges on like a good soldier. Today, state employees arrived at work to find emails, mass distributed via the state’s “Bulletin Board,” attempting to address the “incorrect” information “distributed over the last few weeks” regarding the anticipated health insurance changes.

Basically, she denied all negative information, threw up administration smoke screens, made lame excuses and (ho-hum, yawn) blaming the Affordable Care Act (Obamacare), which has absolutely nothing to do with the Office of Group Benefits.

While Kristy rants that premium increases will be negligible (if one can consider a 47 percent bump negligible), we would remind her it’s not about the premiums; it’s about the benefits. It’s about the co-pays. It’s about the deductibles. Kristy, you can’t ignore the elephant in the room indefinitely.

As state workers peruse Kristy’s latest missive, it is important to refer back to the aforementioned Paul Rainwater letter of April 29, 2011, to get a quick refresher as to just how capable the administration is of clouding an issue with misinformation and outright lies.

They lied then so what’s to keep them from lying now?

The fact is the Jindal administration, what’s left of it, does not nor has it ever cared about the welfare of state employees.

Jindal is joined at each hip by his former—and only—private sector employer McKinsey & Co. on one side and ALEC on the other and both have the same agenda: the destruction of working Americans in favor of ever increasing corporate profits. Together, they guide each and every step Jindal takes.

McKinsey & Co., it should be noted, is also a member of ALEC and is the same company that once consulted General Motors into bankruptcy, advised AT&T there was no future in the cell phone market and which structured the corporate plan for Enron.

These are the ones who are maneuvering to control the health care future of 230,000 state employees, retirees and dependents.

Only last November, the state flirted with McKinsey & Co. for the purposes of retaining the firm to put together a Business Reengineering/Efficiencies Planning and Management Support Services proposal.

Apparently Jindal opted to go with the less expensive Alvarez & Marcel (A&M) for that contract that has grown from $4.2 million to $7.5 million for A&M to find $500 million in savings over a 10-year period.

But McKinsey did submit a 406-page proposal and a two-page cover letter to Ruth Johnson of the Division of Administration (DOA) which LouisianaVoice has obtained.

Much of McKinsey & Co.’s proposal was redacted by DOA before its release to us—including every word in the proposal dealing with health benefits.

That’s correct. Not a single word about health benefits as proposed by McKinsey was readable. Skip down to page 37 for the redacted health benefits section to see what we mean.

Read the McKinsey report here: McKinsey – State of LA Cost Proposal – Final

In case you don’t have a lot of time, here is a shorter proposal from McKinsey: McKinsey – State of LA Cost Proposal – Final

Are you sufficiently comfortable with that to sit back and trust this administration to do what’s best for you?

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Gubernatorial candidate and Louisiana House Democratic Caucus Chairman John Bel Edwards (D-Amite) has sent a request to House Speaker Chuck Kleckley (R-Lake Charles) to convene a meeting of the House of Representatives in order to review controversial changes coming to the Office of Group Benefits (OGB).

Meanwhile, OGB has issued its own “fact sheet” in advance of the annual enrollment that begins Oct. 1 and closes Oct. 31 designed to defuse information released by the Legislative Fiscal Office that reflect dramatically higher premiums and slashed benefits.

FAQs

OGB’s FAQ data sheet, however, did not include developments reported by LouisianaVoice late Monday which revealed revamped coverage plans designed to force retirees out of OGB and into Medicare coverage. The problem with that strategy, of course, is anyone hired before April 1, 1986, who never worked in the private sector are not eligible for Medicare coverage.

At the same time, the Legislative and Political Director for the Louisiana Federation of Teachers (LFT) has released a series of emails between her and OGB in which she experienced ongoing difficulty in obtaining answers to questions about pending changes in premiums and coverage.

Edwards’ request would allow the house to review the proposal in a forum where all members could ask questions of the Division of Administration, OGB administrators, the Legislative Fiscal Office, and offer suggestions and comments regarding plan changes that will bring an average 47% cost increase to 230,000 plan members and their families.

“The Governor has quietly used your tax dollars as a personal piggy bank, spending the $500 million fund balance of OGB to pay bills that have nothing to do with OGB or its members.” Edwards said. “But over $100million of that balance was paid in directly by the members of OGB. Now that he misspent their money, he dares to add insult to injury by asking more than a quarter million Louisiana working families to pay higher prices for less health insurance coverage.”

Commenting on the dramatic cost increases OGB member will face in the new year, Edwards said, “The likes of Bernie Madoff and Allen Stanford would be proud of the Jindal Ponzi scheme that, like theirs, preys largely on retirees living on fixed incomes.”

Edwards’ letter to Kleckley cited the recent hiring of two new OGB officials at more than six figures each as well as the Alvarez and Marsal contract to find “efficiencies” inside OGB that now totals $7.5million in costs to the state. In a written statement made in conjunction with the letter Edwards asked, “Bobby Jindal, and those who stood by and watched him dismantle healthcare in our state, hold themselves out as fiscal conservatives. Since when does fiscal conservatism define the role of government as an institution that cuts services in order to pay six figures to private consultants?”

“Like all of the governor’s self-created crises, the solution always seems to be to ask more of the people of our state: more money, more patience, more suspended disbelief.” Edwards said.

“New facts have come to light since the session ended. We owe it to our constituents to examine this issue together and to offer up some bipartisan solutions to our concerns. This impacts people in every single part of the state,” said Edwards.

Edwards told LouisianaVoice he has received telephone calls from retirees who were crying over joint efforts by OGB and Blue Cross/Blue Shield to revamp programs that could make coverage for retirees cost prohibitive.

Here is his letter to Kleckley: http://d3n8a8pro7vhmx.cloudfront.net/johnbelforlouisiana/mailings/120/attachments/original/JBEtoKleckley.pdf?1409081088

“This is going to destroy families,” he said, “and we owe it to our constituents to do what we can to keep them whole.”

Mary-Patricia Wray, legislative and political director for the LFT, said she had talked with OGB Executive Director Susan West “after much prodding about why I couldn’t get answers about the plans from anyone else” after a July 30 meeting of the Joint Legislative Committee on the Budget.

She said that while OGB has provided a preview of the agency’s plan booklet and dates for informational meetings to other groups, “they have provided LFT with none of this information.

“While we represent 21,000 teachers and school employees, many of whom are active members of OGB, the ones who will have no option on the exchange, but will only be able to pick from the new more costly plans, OGB has refused to assist us in directing our members to the appropriate resources to help them select a plan.

“This is even amidst the layoffs at OGB that have left them, in our opinion, unable to properly service the members of the plan.

“We have no problem with assisting our members,” she said. “However, we do have a problem with being denied the tools needed to do that well—for no apparent reason.”

She said West “asked me specifically to call with questions so that I can deliver accurate information to active members or OGB. If she has time to deal with our organizations questions and concerns personally, presumably as the busiest person on staff, I am left to believe the I willful rejection of our inclusion in important meetings about plan details and member communications is simply retribution for our testimony at Joint Budget, since up to that time there was no I indication whatsoever that our attempts to be a team player and deliver accurate info to teachers a school employees was in any way burdensome to the staff of OGB.

“This is an incredibly disappointing communication—one that unfortunately aligns largely with the direction in which policy makers have taken OGB—one that has cut so many staff people to occasion private contracts that it can ostensibly claim those very cuts as the self-created crisis that “requires” it to fail to do its job at all.”

 

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The seventh floor of the Bienville Building on North 4th Street in Baton Rouge became a beehive of activity recently when employees of a temporary personnel service moved in to begin shredding “tons of documents,” according to an employee of the Louisiana Department of Health and Hospitals (DHH).

DHH is headquartered in the Bienville Building and the source told LouisianaVoice that the shredding, undertaken “under the guise of being efficient and cleaning,” involves documents that date back as far as the 1980s.

“The significance of this is that this is occurring in the midst of a lawsuit (that) DHH is filing against Molina in relation to activities that go back to the ‘80s,” the employee said. “Everyone is questioning the timing. Westaff temporary people have been in the copy room of the seventh floor for approximately two weeks now, all day, every day, shredding documents.”

https://www.westaff.com/westaff/main.cfm?nlvl1=1

The employee said so many documents were being shredded “that the floor is full of dust and employees have been ordered to clean on designated cleaning days” and that locked garbage cans filled with shredded documents “are being hauled from the building daily.”

LouisianaVoice submitted an inquiry to DHH that requested an explanation “in light of the current litigation involving DHH, Molina and CNSI”—two companies the agency contracted with to process Medicaid claims.

CNSI (Client Network Services, Inc.), which replaced Molina as the contractor for those services in 2011, had its $200 million contract cancelled by the Jindal administration after allegations of contact between then-DHH Secretary Bruce Greenstein and CNSI, his former employer, during the contract selection process. Investigations by the Louisiana Attorney General’s and the U.S. Attorney’s offices ensued but little has been heard since those investigations were initiated. Meanwhile, CNSI filed suit against the state in Baton Rouge state district court in May of 2013, alleging “bad faith breach of contract.” http://theadvocate.com/home/5906243-125/cnsi-files-lawsuit-against-state

Molina, meanwhile, was reinstated as the contractor to process the state’s Medicaid reimbursements but last month the state filed suit against Molina Healthcare and its subsidiary Molina Information Systems, alleging that the state paid Molina “grossly excessive amounts” for prescription drugs for more than two decades because the firm engaged in negligent and deceptive practices in processing Medicaid reimbursements for prescription drugs.

Prescription drugs account for about 17 percent of the state’s annual Medicaid budget, the lawsuit says.

The state’s lawsuit says that Molina has processed the state’s Medicaid pharmacy reimbursement claims for the past 30 years but from 1989 to 2012, Molina neglected to adhere to the state formula for payments and thereby committed fraud and negligence, violated the state’s consumer protection and Medical Assistance Programs Integrity laws. http://theadvocate.com/news/business/9579038-123/la-sues-medicaid-drug-payment

Olivia Watkins, director of communications for DHH, told LouisianaVoice by email on Wednesday that the Division of Administration maintains a contract with Westaff for temporary workers which can be used by different state departments. “DHH requested temporary workers through the existing contract to assist with various projects, including shredding,” she said.

A search of LaTrac, the state’s online directory of state contracts, failed to find either Westaff or Molina listed as contractors among either its active or expired contracts.

“With regard to the shredding,” Watkins said, “those documents that were shredded were old cost reports, statements and facility documents that were outside of their document retention period (anywhere from 5-10 years). The files being shredded were in no way related to the department’s previous contract with CNSI.”

Watkins, while denying any connection to the CNSI contract, failed to mention whether or not the shredded documents involved Molina’s contract or the state’s litigation against the company even though the LouisianaVoice inquiry specifically mentioned both companies.

In June of 2002, the nation’s largest accounting firm, Arthur Andersen, was found guilty of unlawfully destroying documents relating to the firm’s work for its biggest client, the failed energy giant, Enron.

And while that conviction was eventually overturned, the damage from its actions doomed the company and it ultimately shut its doors for good.

In the weeks leading up to the Enron collapse, Andersen’s Houston practice director Michael Odom presented a videotaped talk—that was played many times for Andersen employees—on the delicate subject of file destruction.

In that video, Odom said that under Andersen’s document retention policy, everything that was not an essential part of the audit file—drafts, notes, emails and internal memos—should be destroyed immediately. But, he added, once a lawsuit was filed, nothing could be destroyed. Anything could be lawfully destroyed, he advised Andersen employees, up to the point when legal proceedings were filed (emphasis ours). http://www.mybestdocs.com/hurley-c-rk-des-law-0309.htm

“If it’s destroyed in the course of the normal policy and litigation is filed the next day, that’s great,” he said, “because we’ve followed our own policy, and whatever there was that might have been of interest to somebody is gone and irretrievable.”

In a matter of days, Andersen’s Houston office began working overtime shredding documents, according to authors Bethany McLean and Peter Elkin in their book The Smartest Guys in the Room (The Amazing Rise and Scandalous Fall of Enron).

Perhaps the DHH shredding had nothing to do with the CNSI contract with DHH or with the litigation filed by CNSI over cancellation of its contract.

And it may be that the shredding was in no way connected to the Molina contract, even though Watkins failed to address that specific question by LouisianaVoice.

It could well be, as Watkins said, the document destruction was purely a matter of routine housekeeping.

But the timing of the shredding flurry, coming as it did only days following the July 10 filing of DHH’s lawsuit against Molina, and DHH’s murky and adversarial relationship with the two claims processing contractors do raise certain questions.

And Watkins’ assertion that the shredded records consisted of “old cost reports, statements and facility documents,” the dates of which fall within the time frame of the allegations against Molina, would seem to make those questions take on even greater relevance.

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The Jindal administration has announced plans to jettison 24 more positions at the Office of Group Benefits (OGB) as a cost cutting measure for the cash-strapped agency but is retaining the top two positions and an administrator hired only a month ago.

The effective date of the layoffs is Aug. 15.

The latest cuts will leave only 47 employees when the agency is relocated to the Claiborne Building basement to share office space with the Office of Risk Management. The Claiborne Building also houses the Civil Service Department, the Board of Regents, the Department of Education, the State Land Office and the Division of Administration.

The layoff plan submitted to the Department of Civil Service on June 14, said there was insufficient work to justify all 71 positions.

Affected by layoffs are eight Benefits Analyst positions, three Group Benefits Supervisory spots, one Group Benefits Administrator, seven Administrative Coordinators, an Administrative Assist, two Administrative Supervisors, one IT Application Programmer/Analyst and one Training Development Specialist.

OBG Chief Executive Officer Susan West, one of those being retained, will be making a physical move back into her old offices. She previously worked for ORM before that agency was gutted by Jindal’s grand privatization scheme and she moved over to OGB.

West, who makes $170,000, and Interim Chief Operating Officer Charles Guerra ($107,000) are not affected by the layoff nor is Elis Williams Cazes ($106,000)) was appointed as Group Benefits Administrator on June 23.

Cazes was previously employed by Blue Cross/Blue Shield of Louisiana which serves as the third party administrator of the OGB Preferred Provider Operation at a cost to the state of $5.50 per month per enrollee, which computes to an amount a little north of $70 million per year.

Her position was created—and the requirements reportedly written especially to her qualifications—as the Medical/Pharmacy Administrator responsible for benefit plan management and vendor performance with the primary responsibility to “continuously monitor medical and pharmacy benefit plans to seek out modification of plans or implementation of new plans that reduce claims costs and provide efficiencies for the state and plan participants,” according to the justification given for retaining her position.

Well, we can certainly see where her position is as indispensable as West’s and Guerra’s.

All this takes place at a time whe OGB’s reserve fund has dwindled from $500 million at the time of the agency’s privatization in January 2013 to about half that amount today. Even more significant, the reserve fund is expected to dip as low as $5 million by 2016, just about the time Jindal leaves town for good.

Completing the trifecta of good news, we also have learned that health benefits for some 200,000 state employees, retirees and dependents will be slashed this year even as premiums increase.

In June, West broke the news to the OGB employees. She erroneously said the 47 remaining employees would be reassigned other duties and some might see pay reductions and that those with seniority could bump junior employees in desired positions. The Civil Service Department, however, said salaries could not be cut and bumping is no longer allowed.

Isn’t it nice to know your agency director knows the procedures?

Employees were told that letters would go out between July 1 and July 15 to those who were being laid off. On July 7, they were told the letters would be delivered by hand on Friday, July 11. None came. On the following Monday (July 14) confusion of the order of the day as Deputy Commissioner of Administration Ruth Johnson sent emails to those affected and instructed them to attend a noon meeting in the OGB board room. Upon entering the board room, each person was handed a packet that informed them that Civil Service had not approved the layoffs.

During the meeting, according to one who was there, West kept repeating, “I get this. I’ve been where you are. I get this. However, there are worse things. It’s not like losing a child. I get this.”

Way to soften the blow, Susan. You might have reminded them that the fighting between Israel and Palestine isn’t so bad because there’s also an Ebola outbreak in Africa or that while you’re losing your home to a hurricane storm surge, some people are having to endure heavy wind damage. Or better yet, take them all to a showing of The Fault in Our Stars. That’ll cheer them up.

“It was the ‘I get this’ and comparison of losing a job to losing a child that infuriated the OGB state employees,” the employee said. “This is the worst thing in their lives right  now, some are battling cancer and working; some have children and grandchildren to feed; some live paycheck to paycheck; some are taking care of the elderly and family; all have bills, rents/mortgages, school tuition, etc.”

But you really can’t blame Susan. She previously worked for ORM and was among those present when ORM Director Bud Thompson broke the privatization news to his employees by standing before them, grinning, as he said, “I still have my job.”

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To probably no one’s surprise except a clueless Gov. Bobby Jindal, the takeover of the Louisiana Office of Group Benefits (OGB) by Blue Cross Blue Shield of Louisiana 18 months ago has failed to produce the $20 million per year in savings to the state.

Quite the contrary, in fact. The OGB fund balance, which was a robust $500 million when BCBS took over as third party administrators (TPA) of the Preferred Provider Organization (PPO) in January of 2013, only 18 months later stands at slightly less than half that amount and could plummet as low as an anemic $5 million a year from now, according to figures provided by the Legislative Fiscal Office.

OGB is one of the main topics to be taken up at today’s meeting of the Joint Legislative Committee on the Budget (JLCB) when it convenes at 9 a.m. at the State Capitol.

OGB is currently spending about $16 million per month more than it is collecting in revenue, said Legislative Fiscal Officer John Carpenter.

The drastic turnaround is predicated on two factors which LouisianaVoice warned about two years ago when the privatization plan was being considered by the administration:

  • Jindal lowered premiums for state employees and retirees. That move was nothing more than a smokescreen, we said at the time, to ease the state’s share of the premium burden as a method to help Jindal balance the state budget. Because the state pays a percentage of the employee/retiree premiums, a rate reduction would also reduce the amount owed by the state, thus freeing up the savings to patch gaping holes in the budget.
  • Because BCBS is a private company, it must return a profit whereas when OGB claims were processed by state employees, profits were not a factor. To realize that profit, premiums must increase or benefits decrease. Since Jindal had already decreased premiums, BCBS necessarily found it necessary to reduce benefits.

That, however, still was not enough and the negative income eroded the fund balance to its present level and now legislators are facing a severe fiscal crisis at OGB.

And make no mistake: this is a man-made crisis and the man is Bobby Jindal.

In a span of only 18 months we have watched his grandiose plans for OGB and the agency’s fund balance dissolve into a sea of red ink like those $250 million sand berms washing away in the Gulf of Mexico in the wake of the disastrous BP spill.

There is no tactful way to say it. This Jindal’s baby; he’s married to it. He was hell bent on privatizing OGB and putting 144 employees on the street for the sake of some hair-brained scheme that managed to go south before he could leave town for whatever future he has planned for himself that almost surely does not, thank goodness, include Louisiana.

So ill-advised and so uninformed was Jindal that he rushed into his privatization plan and now has found it necessary to have the consulting firm Alvarez and Marcel, as part of their $5 million contract to find state savings, to poke around OGB to try and pull the governor’s hand out of the fiscal fire. We can only speculate as to why that was necessary; Jindal, after all, had assured us up front that the privatization would save $20 million a year but now cannot make good on that promise.

In the real world, the elected officials are supposed to be the pros who know that they’re talking about while those of us on the sidelines are mere amateurs who can only complain and criticize. Well, we may be the political novices here, but the results at OGB pretty much speak for themselves and we can rightfully say, “We told you so.”

Are we happy or smug? Hell, no. We have to continue to live here and raise our children here while Jindal will be taking a job with some conservative think tank somewhere inside the D.C. Beltway (he certainly will not be the Republican candidate for president; he isn’t even a blip on the radar and one former state official now residing in Colorado recently said, “No one out here has ever even heard of him.”)

In a five-page letter to JLCB Chairman Rep. Jim Fannin (R-Jonesboro), Carpenter illustrated the rate history of OGB going back to Fiscal Year 2008 when premiums were increased by 6 percent. The increase the following year was 3.7 percent and the remained flat in FY-10. In FY-11, premiums increased 5.6 percent, then 8.1 percent in FY-12 when the system switched from a fiscal year to calendar year. but in FY-13, the year BCBS assumed administrative duties, premiums dropped 7 percent as Jindal attempted to save money from the state’s contributions to plug budget holes. For the current year, premiums decreased 1.8 percent and in FY-15 are scheduled to increase by 5 percent.

OGB Report_July 2014 FOR JLCB

Carpenter said that since FY 13, when BCBS took over the administration of OGB PPO claims, OGB’s administrative costs began to shift to more third party administrator (TPA) costs as the state began paying BCBS $23.50 per OGB member per month. That rate today is $24.50 and will increase to $25.50 in January of 2015, the last year of the BCBS contract.

That computes to more than $60 million per year that the state is paying BCBS to run the agency more efficiently than state employees who were largely responsible for the half-billion-dollar fund balance.

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Just when you thought the news coming from this administration couldn’t possibly get any more dysfunctional…it does.

In fact, whatever semblance of logic this administration had remaining is fast circling the drain even as our governor attempts to push his agenda onto a national stage while leaving it to high-priced consultants and amateurs like Kristy Nichols to find solutions to mounting problems at home.

This is the same governor, Bobby Jindal, who recently told the graduating class at Jerry Falwell’s Liberty University that the entertainment industry’s intolerance is eroding the very foundation of America’s freedom—even as his Department of Economic Development continues to give away the store in the form of hefty tax incentives to….that very same entertainment industry.

As the Church Lady from Saturday Night Live would say, “Well now, isn’t that special?”

Earl Long might say it another way. He well may have been describing Jindal’s flexibility in spewing his political rhetoric to play to the views of his audience when he told Ruston Daily Leader fledgling reporter Wiley Hilburn in July of 1959 (only a couple of months before Long’s death) that Hilburn’s uncle, former Lt. Gov. C.E. “Cap” Barham, could “talk out of both sides of his mouth and whistle out of the middle at the same time.”

But bizarre as Jindal’s performance has been over the past six-plus years, he would be hard-pressed to surpass the downright preposterous laundry list of proposed cuts in spending rolled out on Monday by Nichols, serving as his proxy while he campaigns to be the Second Coming of Alfred E. Neuman.

All that was missing from Nichols’ theater of the absurd were the orange wig, red nose, big shoes and a seltzer bottle.

To say this administration is delusional is to be overly kind.

To refresh, you will remember that back in January, the administration signed a $4.2 million contract (quickly amended to $5 million in violation of state law requiring legislative concurrence on initial amendments greater than 10 percent) with the consulting firm of Alvarez & Marsal, charging the firm with finding $500 million in savings by April. Well, April has come and gone and now Nichols says the firm’s report will be a month late, now expected at the end of May.

Alvarez & Marsal (A&M), to further refresh the old memory banks, is the same firm that offered up the sage advice to the Orleans Parish School Board in December of 2005, only months after Hurricane Katrina, to fire 7,500 teachers, effective Jan. 31, 2006.

That little bit of economic wisdom may wind up costing the state $1.5 billion following a court decision in favor of the teachers who filed suit after being summarily fired.

A&M also is the same firm that recommended the privatizing of the LSU Medical Center in New Orleans (formerly Big Charity Hospital) in the voluminous Streamlining Commission report initiated during Jindal’s second year in office, thus sowing the seeds of Jindal’s ambitious privatization plan for LSU’s statewide system of hospitals.

And we all know how well that fared, don’t we?

According to friend and fellow blogger C.B. Forgotston, the preliminary report submitted by A&M last Thursday (May 8) was a whopping two and one-half pages in length ($2 million per page—by comparison, this post alone should be worth $10 million) and contained recommendations for only $74 million of the $500 million goal.

And now Nichols has come before the Senate Finance Committee to inform senators that “Every (cabinet) secretary signed off on the savings.”

Well, DUH! Of course they signed off on the proposals. They may be sycophants but they ain’t stupid. We know what happens to anyone in the state employ who might dare adopt a viewpoint at odds with Jindal. Obviously, these people who could never command comparable salaries in the private sector want to cling to their jobs like so many ticks in a hound dog’s ear.

But enough of the ancient history; let’s allow Jindal and A&M to demonstrate in their own words just how inane the future leader of the free world can be. Among the innovative ideas for saving the taxpayers $74 million are these jewels of pure brilliance:

  • Cutting back the hours of operation of the Cameron Parish ferry;
  • Circling employment ads for prison inmates;
  • Decreasing the thickness of asphalt on roadways;
  • Requiring pregnant women on Medicaid to use midwives or doulas for delivery;
  • Treating the partners of pregnant women in government health care programs for STDs.

Oh, we get it. Very funny. Kristy, you’re quite the card.

What? You’re serious?!!!?? No way! C’mon, guys; a joke’s a joke but now you’re starting to scare us. We’d rather hear something a little less scary—like finding the hook from the one-armed killer in the car’s door handle or about the water skier falling into a nest of water moccasins.

Okay, now sit back, Kristy, and take a reality check here. Where’s the proposal to prohibit offering six-figure salaries to washed-up politicians so they can occupy a desk for a few year to fatten their state pensions? We mean, even with motion sensor lighting, these guys are so useless that they inhabit darkened offices.

You want to cut the hours of operation of the Cameron Ferry from 24 to 16 or 18 hours and you want to cut the thickness of asphalt overlay in half—from two inches to one-inch? You say the two would save the Department of Transportation and Development (DOTD) $10.9 million?

Have you ignored the fact that the only detour along Highway 82 in Cameron Parish would require a drive of 120 miles?

You say Texas has already adopted a new material that allows that state to overlay roadways with one-inch-thick asphalt? Wonderful. Have you taken into account that the soil composition and consistency in Louisiana, particularly South Louisiana, is vastly different than that of Texas? To implement this foolish proposal would place an added onus on already over-burdened DOTD maintenance units when the thinner asphalt produces thousands of potholes that are certain to occur as the base beneath the asphalt deteriorates. If DOTD Secretary Sherri LeBas did agree to this idiocy as Nichols claims, she is grossly unqualified to head up the agency responsible for the construction and maintenance of the state’s roads and bridges.

Circling employment ads for prisoners? Gawd. For this, we’re paying A&M $5 million. We could have suggested that for a buck-fifty.

Nichols explained that the state intends to implement the program whereby low-risk prisoners in Orleans and Jefferson parishes would earn their keep by working by serving the latter portions of their sentences in minimum-security facilities such as parish prisons run by sheriffs and giving part of their paychecks to the prison operators to help pay for their room and board. She said that would save the state $9.4 million. How do you propose to keep the sheriffs honest in reporting actual salaries against what they report to the state? Just a thought.

Midwives and doulas for deliveries for pregnant women on Medicaid? Interesting concept. Has anyone thought of bringing back leeches? How about electric shock for mental illness? And willow bark for treating fever? And now, simply because they are on Medicaid, we propose to deny these expectant mothers the same childbirth facilities to which people like Kristy Nichols or Sherri LeBas or Kathy Kliebert might be privy?

And you propose to treat the sexual partners of pregnant women for STDs after the fact?

Beautiful, just bleeping beautiful.

This aberration of an administration, as we (borrowing a line from Three-and-a-Half Men) have said before, has all the emotional stability of a sack full of rats in a burning meth lab.

Even sadder is the fact that the legislature, in allowing this spoiled brat of a child Jindal to get away with his shenanigans, for failing so miserably to hold him accountable, isn’t far behind.

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A six and one-half-year-old lawsuit has taken a dramatic turn following a Mangham contractor’s claim that the Louisiana Department of Transportation and Development (DOTD) denied payments for work performed by his company because he resisted shake-down efforts by a DOTD inspector.

Jeff Mercer owner of the now-defunct construction company that bears his name, worked as a subcontractor to several prime contractors on six different projects for which he says he has not been paid. He first filed his lawsuit against DOTD on Sept. 7, 2007, in state district court in Monroe, claiming that the state owes him nearly $9 million for actual work done for which he was never paid, plus interest and delay costs which bring the total to more than $11.6 million.

He raised the stakes when he and three of his employees filed sworn affidavits with the court in which all four say DOTD inspector Willis Jenkins demanded that Mercer either “put some green” in his hand or that Mercer place a new electric generator “under his carport” the following day, Mercer’s affidavit says.

Foreman John Sanderson, carpenter Bennett Tripp and traffic control supervisor Tommy Cox, all employees of Mercer at the time, signed similar affidavits attesting to the same sequence of events in which they each say Jenkins tried to extort either cash or equipment from their boss.

The incident, all four said, occurred in 2007 when Mercer was contracted to perform work on a $79,463 project on Louisville Avenue in Monroe.

“While working on that project,” Sanderson said in his sworn statement, “I was approached by Willis Jenkins. Mr. Jenkins informed me at that time that he could make things difficult on Jeff Mercer, LLC.

“He indicated that this burden would not necessarily be on the Louisville Avenue project but on future jobs awarded to Jeff Mercer, LLC,” Sanderson said. “I replied, ‘You didn’t mean to say that,’” whereupon, Sanderson said, Jenkins repeated his threat. “During that conversation, I heard Willis tell Jeff that he ‘wanted green,’” Sanderson said.

Tripp, in his signed statement which was notarized by Baton Rouge attorney Jennifer Dyess, also said he heard Jenkins tell Mercer he “wanted some green.” He said he also heard Jenkins tell another Mercer employee that Jenkins, pointing to a generator in Tripp’s truck, said he “wanted one of those under his carport.”

Following complaints from Mercer, Jenkins was subsequently removed from the project but Tripp said the shakedown continued when another state official told Mercer employees, “Y’all had my buddy removed and we’re going to make the rest of the job a living hell.”

Cox likewise said he heard Jenkins tell Mercer employees he wanted a generator in his carport. “Willis (Jenkins) further indicated that he “wanted his generator to be new,” or “this could be a long job.”

Mercer, who founded his company in 2003, said that Jenkins approached him and said he needed “to put some green in his hand.” Mercer says in his affidavit that he asked Jenkins to repeat himself, and he did so. “I then replied that ‘I don’t do that,’” Mercer said.

Jenkins responded that Mercer “better do that or you won’t finish this project or any other project in this area.”

During their exchange, Mercer said that Jenkins told him, “This is going to be a long job if I don’t get the green or the generator.”

Mercer said in his sworn statement that he call Jenkins’ supervisor Marshall Hill and advised him of Jenkins’ action. “Marshall advised that he would remove Willis from the Louisville Avenue project,” Mercer said, adding, “Marshall also stated, ‘Off the record, this doesn’t surprise me.’ Shortly thereafter, (Jenkins) was removed from the …project.”

It was after that incident that Mercer’s problems really began, he says. After receiving verbal instructions on the way in which one project was to be done, it was subsequently approved but several days later, DOTD officials, including defendant John Eason, advised that the work was not acceptable.

Work for which Mercer says he has not been paid includes:

  • Two projects on I-49 in Caddo Parish ($1.6 million);
  • A Morehouse Parish bridge project ($7.1 million);
  • Louisville Avenue in Monroe ($79,463);
  • Well Road in West Monroe ($50,568);
  • Airline Drive in Bossier City ($57,818);
  • Brasher Road in LaSalle Parish ($70,139).

Mercer claims in his lawsuit there was collusion among DOTD officials to “make the jobs as costly and difficult as possible” for Mercer.

He claims that DOTD officials provided false information to federal investigators; that he was forced to perform extra work outside the contract specifications; that a prime contractor, T.J. Lambrecht was told if he continued to do business with Mercer, closer inspections would result, and that job specifications were routinely changed which in turn made his work more difficult.

DOTD interoffice emails obtained by LouisianaVoice seem to support Mercer’s claim that he was targeted by DOTD personnel and denied payment on the basis that the agency was within its rights to “just say no.”

One email from DOTD official Barry Lacy which was copied to three other DOTD officials and which stemmed from a dispute over what amount had been paid for a job, made a veiled threat to turn Mercer’s request for payment “to the U.S. Department of Transportation’s Office of Inspector General.”

Still another suggested that payment should be made on a project “but never paid to Mercer.”

“I did everything they told me to do,” Mercer told LouisianaVoice. “But because I refused to allow one DOTD employee to shake me down, they put me out of business. They took reprisals and they ostracized me and broke me but now I’m fighting back.”

Both Mercer and his Rayville attorney David Doughty indicated they had reported the events to the governor’s office but that no one in the administration had offered to intervene or even investigate his allegations.

It was not immediately clear if the Louisiana Office of Inspector General had been notified of the claims.

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