Chalk up another victim to the Petulance of Piyush. This time it’s Office of Group Benefits (OGB) CEO Tommy Teague, the man who refused to throw his employees under the bus to satisfy the governor’s gargantuan ego.
Teague, asked to resign or be fired late Friday by Deputy Commissioner of Administration Mark Brady, refused to step down voluntarily and was terminated. Teague told the Baton Rouge Advocate that Brady gave no reason for his action. The locks to Teague’s office door were changed and his computer seized after he left OGB Friday.
He was six months away from qualifying for retirement.
The latest development is clear evidence of the high stakes in this game. There is an OGB surplus of $500 million on the table and Jindal wants it to help plug a hole in his budget.
What will he do next year, install parking meters in all the state employee parking garages?
Only 18 months ago, Teague’s wife, Melody Teague, a Department of Social Services contract grants reviewer, was canned one day after she had the temerity to publicly criticize the Piyush Push (yeah, we like that phrase) to privatize everything that moves in state government.
Her remarks were made during an Oct. 1, 2009, state Commission for Streamlining Government forum in Jefferson Parish.
Tommy Teague was shown the door after word leaked out that Brady apparently brought in the international investment banking firm of Goldman Sachs last fall to help plan the privatization of OGB and that Brady had ties to Goldman Sachs from a previous position as executive director of the Arab Banking Association of North America.
OGB, or perhaps more accurately, the Division of Administration, enlisted the aid of Goldman Sachs to write specifications for a request for proposals (RFP) for a firm to conduct financial assessment of OGB and to market the agency to a private buyer that would keep as much as $350 million of OGB’s $500 million surplus as part of the purchase of assets that would also include premiums to be paid by state employees for health coverage.
When proposals were opened a few weeks ago, voila! Goldman Sachs was the only bidder. In most circles, public and private, that would be considered a glaring conflict of interests. A Senate report released Thursday roundly criticized Goldman Sachs for helping to bring about the financial crisis of 2008. Now the firm stands to net $6 million for doing a financial assessment of OGB and for trying to find a buyer. The $6 million will be paid whether or not Goldman Sachs is successful in its efforts.
Firing people seems to be Jindal’s favorite way of dealing with a problem. Some others leave to cash in on their connections established and some others leave voluntarily, out of disgust.
Like Richard Sherburne, who resigned as State Ethics Administrator after Jindal gutted the Ethics Board’s adjudicatory authority and gave it to administrative law judges. That couldn’t have been because Jindal had been fined by the State Ethics Board for campaign violations.
Then, there was Jim Champagne, executive director of the Louisiana Highway Safety commission for 12 years, whose passion was driver safety. Champagne made the fatal mistake of disagreeing with Jindal’s decision to repeal the state’s motorcycle helmet law and poof! He was gone.
Jindal tried to get Tammie McDaniel to resign her seat on the Board of Elementary and Secondary Education because she refused to go along with some of his education reform programs. She refused at first but finally stepped down.
Ann Williamson “resigned” her position at the Department of Social Services after complications were experienced with assistance programs following Hurricane Gustav.
William Ankner was Secretary of the Department of Transportation and Developments but after a $60 million highway construction contract was awarded to the high bidder, he was shown the door.
Most recently, Roland Toups of Baton Rouge, the longest-serving member of the Louisiana Board of Regents, resigned under not-so-subtle pressure from Jindal so that he could appoint vascular surgeon Dr. Albert Sam, II, an African-American to the board.
Toups showed a lot of class in stepping down, saying he felt a “responsibility.” Jindal denied the move had anything to do with a lawsuit filed by students at Southern University over the all-white makeup of the Regents. Yeah, right.
Ironically enough, in Sam’s first vote as a member of the board, he voted against Jindal’s proposal to merge the University of New Orleans and Southern University-New Orleans. So much for strategy.
So now, apparently it was Tommy Teague’s turn.
Terague’s wife, by the way, was reinstated after she filed legal action against the state. Tommy Teague might not be so lucky. He was an unclassified employee who served at the pleasure of the Division of Administration.
State Sen. Butch Gautreaux (D-Morgan City), a member of the OGB board of directors, is an outspoken opponent of the sale of the agency, even going so far as to write a letter to his fellow legislators to ask their support in opposing the sale. “Help me let everyone know that we are not afraid and we are not for sale,” he wrote.
He attributed Jindal’s rise to power to what he called “predatory politics.” He said Jindal’s mindset appears to be “Let’s take out the weakest in the herd, employees who are afraid of losing their jobs. The general public loves it.”
Indeed, Jindal has consistently shown that he holds state employees in utter disdain by selling off their jobs, raising the employee contributions to retirement and health benefit programs while denying civil service workers merit raises for the second year in a row.
Not satisfied with that, he displayed the height of arrogance and contempt on Thursday by issuing a “State Employee Appreciation Day” proclamation.
Employees could almost see the smirk on this face as he signed it.
Louisiana Voice 
This administration has just lost the LAST GOOD GUY! Tommy Teague cared about his staff, but more importantly he cared about those he served. His program has the lowest administrative costs of any public or private health care insurer. It has taken 30 years to build this organization into a well-run team. Claims are paid nightly. The best rates were negotiated for all services. This was his calling. He did nothing wrong. He worked with the administration in their efforts to sell an unbroken business. He had the interests of the state in his heart. This is a sad day for EVERY Louisiana citizen. DO NOT VOTE FOR BOBBY AGAIN! He will slice our state until it looks like a decimated army battlefield. Everyone will bleed.
I heard they put Tom Aswell on paid administrative leave pending an investigation. Is this true?
True. Furthermore, Office of Risk Management employees were ordered not to speak to, accept calls from or have communications with Tom Aswell in any manner.
How can our Legislators allow this to happen to OGB or to Tom Aswell???
Don’t worry about me. I have my retirement. I’m o.k. Concentrate your efforts to saving Group Benefits. That’s far more important!
I am on workman’s comp for a permanent disability and now that it went to private sector FARA had the nerve after 10 years of being on W.C. and paying $15,000.00 TO LASERS to Buy back the $4000 monies took out of my retirement for a credit union; to ask my neurosurgeon if I could return to work. THEY ARE STUPID!!!! All they have to do is review my record. My neurosurgeon is very angry and said he does not have time to make FARA’s life easier. He’s too busy. Tom they let you go for the same reason they let Tommy go; you weren’t their puppet. Thank GOD for you. May be the Lord needed you here to keep us employees/retires informed. God bless you.
With apologies to Pastor Niemoller,
First they came for those at risk management,
and I didn’t speak out because I wasn’t at risk management
Then they came for those at the prisons,
and I didn’t speak out because I wasn’t at a prison.
Then they came for those at OGB,
and I didn’t speak out because I wasn’t at OGB.
Then they came for me
and there was no one left to speak out for me.
State employees are, it seems, going to die silently. No complaint, no anger – not even a whimper. If they don’t start speaking out soon, there will be nobody left to speak when, finally, they come for you.
We did not know they were sneaking behind our backs and doing this; but now that I do know, what can I do to stop it???
OGB is the best insurance plan in Louisiana; and now that they are have a money surplus; all of a sudden they want to take it over. DOES ANYONE REMEMBER THE EDWARDS ADM. and what they did??? HOW CAN I STOP THIS???
If someone doesn’t stop him Louisiana is going to fall….and I mean fall hard. Hardworking people, and people who care about this state and the people are being run over and run out all for the purpose of one tyrant with dollar signs in his eyes.
“All tyranny needs to gain a foothold is for people of good conscience to remain silent”- Thomas Jefferson
Finding this article was a surprise. I never had a good perception of Bobby Jindal suspecting him as a crook. He is extremely intelligent among the otherwise dumb folks in the right-wing. However, sadly, he has used his personal assets completely against humanity and the good for the citizens. That is the real shame.
Where are the Long brothers when you need them?
the politics in Louisiana (at the top) are worse than any other state.
How dare he rape the health care reserves for his own political gain–he needs to be recalled!!!!!!
He caters to the religious up north, the well to do down south, and middle class morons who don’t know a damn thing about why they vote against their interest.
We wonder why LA ranks last in good and 1st in bad in most categories.
I give you Sir Numbnuts, and it will get worse.
All it takes is a basic understanding of statistics to see his numbers do not add up as honest in anyway shape or form.
Thanks for all your great work Tom, we all knew it was only a matter of time before they came after you. I hope they realize that you and Louisiana Voice aren’t going anywhere and perhaps you’ll have a bit more freedom to poke harder and “Push Piyush” right out of office.
Tommy Teague was an excellent CEO. He made needed changes at OGB which turned the agency around. When Teague took over at OGB, the agency had a $100 million debt. Five years later, due to the changes Teague made, OGB has a reserve fund close to $500 Million. He did this by OGB taking all plans in house, meaning that OGB owns the health insurance plans and sets the premiums actuarially. Then OGB hired private insurers to administer all but one plan, the PPO which OGB has owned and operated for more than 30 years. This was all done while make few benefit changes, little to no increase in premiums (while the nation averaged double digit increases each year), and decreasing the administrative costs.
How do you fire someone who is so successful? He stood against changes which will harm the state longterm! He stood agianst changes which only help politicians line their contribution accounts!
God bless Tommy Teague.
Louisiana has a short memory of the damage he did at DHH years back! Wow! Then we voted him governor to destroy the state we love! It’ll never be the state we know and love – not when he’ s finished!
He is running for governor; what a joke. He is an embarrassment to this state. He cannot speak worth a crap. Remember his Republican response nationwide a few years ago. Honestly
Let’s simply not re-elect him. Let’s show him the door.
$500 million surplus….hmmmm…. Since OGB is a self-insured program shouldn’t the surplus be refunded to the premium payers, namely the state employees and retirees who opted to be in the program? These funds are collected to meet pending and future claims. And I am no Rhodes Scholar…..
Like any insurance company, OGB must keep reserve funds on hand to pay claims. That’s what the $500 million is–reserve funds. Claims are paid from premiums collected, of course, but the strength and reputation of any insurance company depends on its cash reserves. If there were some type of catastrophic epidemic, those reserves would be needed for unanticipated claims.
Thanks, Tom…I understand. I was just speaking tongue-in-cheek referring to Jindal making a cash grab for the cash reserves that are at least in part made up of state employees and retirees contributions, should Jindal dissolve OGB in favor of outsourcing. Let me be clear: I am not in favor of this.
On a different subject…is there any truth to a grapevine rumor that Ray Stockstill retired and separated from the state on Christmas Day 2010 and then was rehired the next week in the same position and salary? I know it is an unclassified position and, if true, is legal according to CS rules, BUT didn’t Sally Clausen get criticized for the same deal? Why wouldn’t this be as news worthy since the press and legislature seem so fixated on promotions, optional pay, etc.?
Also having this kind of surplus means no premium increases. So it works out great for plan members.
I think everyone who worked with, or met Tommy, or those who heard about the good things he accomplished at OGB should send him a card or note to thank him. He has already received several notes from retirees and classified emloyees. It really brightens his day. His address is:
Tommy Teague
4626 Lake Lawford Court
Baton Rouge, LA 70816
There is a letter on one of these posts that is being passed around for state workers to send to their legislators on OGB. Can someone help me find it? Is there some grassroots effort being launched? Is this it? If so, we need to get the word out. Pass along the URL of this blog, send a copy of the letter around . . . Tom, you might want to look into allowing people to share your posts on Facebook.
Any of my posts may be shared on Facebook without the necessity of obtaining my permission.
thank you Tom; I have posted it everywhere; even to the news channels in New Orleans as we were not aware of any of this. Thanks so much, it is because of you Mr. Aswell that I know what’s going on. Thank you so very much for not keeping quiet. God bless
Peg, go to RSEA website, at: http://www.rseala.org, click on Louisiana Legislative Session box on the left of your screen, HB 32 by Rep. Fannin, the first one on the list gives you the option to click here for draft letter about privatization of OGB. Click on that then print your letter. They also have the address for your legislature’s name to be found. Print the letter and mail it to them all; or email it to every REPRESENTATIVE AND SENATOR in LOUISIANA. HURRY!!!!
[…] we saw in numerous recent examples, political appointees who don’t toe the company line get canned in short order. Every year there are massive and lengthy “cleanups” (furious behind the scenes manual […]
[…] target of an irresponsible administration focused on gimmicks to balance a broken budget. In 2011, after contracting Goldman Sachs to do an analysis of the system for a cool $6m, the Jindal Admin schemed to privatize the office. When the manager in charge of OGB refused to go […]