At least one of the three companies that submitted proposals to replace the Office of Group Benefits (OGB) as a third party administrator (TPA) for OGB’s preferred provider organization (PPO) has done what the Louisiana Civil Service Commission lacked the courage to do: ask tough questions about the selection process.
In fact, United Healthcare on Friday filed a formal protest over the awarding of the three-year, billion dollar contract to Blue Cross/Blue Shield of Louisiana (BCBS).
Reports received by LouisianaVoice indicate there was only a 20-point differential between BCBS and United in the scoring and that BCBS did not have the best score in certain important segments of the overall proposal, namely for the score on claims processing, an area in which one source said BCBS was actually the highest of the three companies.
The Civil Service Commission on Wednesday voted 3-2 in favor of approving the BCBS contract that will result in 121 OGB employees losing their jobs. The approval came after scant testimony supported by an eight-page Power Point presentation by the Division of Administration (DOA) and after allowing opponents less than 20 minutes in which to state their opposition.
Word leaked out immediately following the commission meeting that there had been heated discussion among commission members prior to their entering the aptly-named Louisiana Purchase Room for the meeting—in apparent violation of the state’s open meeting law.
It was also clear from the tone of commission members’ questions, mostly soft balls lobbed at DOA and OGB officials. Conversely, attorney J. Arthur Smith, representing about 100 OGB employees was allowed 15 minutes to present the opposition’s side as commission members appeared to pay scant attention and offer no follow up questions.
When Smith later attempted to correct what he said was incorrect information provided by DOA, commission Chairman David Duplantier rudely stopped him, saying, “This is not a public debate. This proposal was received by the commission in April and you submitted a three-inch thick set of documentation to us on Monday.”
Jindal has benefitted financially from BCBS and its parent company, Louisiana Health & Indemnity. The two combined to funnel $56,000 to Jindal’s political campaign and BCBS gave an additional $100,000 to the Supriya Jindal Foundation, a charity run by Jindal’s wife.
Jindal has been attempting to privatize OGB for more than a year now and is currently on his third agency director since initial efforts to privatize OGB.
Tommy Teague was fired on April 15, 2011, after failing to demonstrate sufficient enthusiasm for the privatization plan.
Teague had taken the agency from a deficit of about $60 million to a $500 million surplus in just over five years.
His successor, Scott Kipper, lasted only six weeks after testifying before a legislative committee that were it left for him to decide, he would not lay off any of the OGB employees. His remarks were made only minutes after his boss, Commissioner of Administration Paul Rainwater had insisted that OGB needed to be downsized by 149 positions.
Rainwater visibly winced at Kipper’s comment and his departure was announced soon thereafter.
It was not immediately clear if United Healthcare, if its protest is denied, would file a lawsuit over the selection of BCBS.
Humana was the other company that submitted a proposal for the PPO takeover.
Two years ago, when BCBS was selected as the TPA of the HMO program for state employees, Humana and United Healthcare filed suit and the court ordered the state to re-bid the proposal.
Louisiana Voice 
If contracting out state agencies is such a great idea, then lets contract the governors office and while we at it, the governor itself. That would save the state lots of money NOT having elections and would be MORE Efficient than elected government officials and governor hand-picked cronies running the state.
Great idea. Sincerely, because we don’t thoughtfully vote anyway. Sham government.
Excellent plan! Look how much we would save on travel expenses while he is out of state raising money and campaigning for others. If he is only working part time, we might could also save some money spent on his benefits such as retirement and health care.
Step out of the Bienville or Galvez building with a pair of binoculars. Now look at the top of the state Capitol and the naked eye will delude you into thinking you see the American flag at the very tip top, but wait…now focus the binoculars and you will see that it actually a Keller Williams “For Sale” sign
I remember when Edwards abolished a whole office at DOTD once because they would not award a contract to one of his cronies…Harry Lee. They hired turncoat Mark Falcon and the Commission ruled in their favor. Those were the days…… I wonder why everyone fears Jindal. What is it about him that turns men into spineless little creatures?
Jindal doesn’t turn ETHICAL people into spineless little creatures. He is a despot who carefully selects the sycophants, money whores and other amoral individuals who will, without question, do his bidding for their own personal gain, despite the cost to the citizens of our state.
I wonder if Morgan Keegan is receiving their $900,000 bonus ( or somewhere in that range if I remember correctly) for the sale of OGB?
Wonder if lil bobby will try to run them out of state for this?
I deal a lot with both Ins. companies as a practitioner. United Health care offers really pathetic coverage to the insured and ridiculously low reimbursement to providers. If it weren’t for BCBS reimbursement rates, I’d have to close my office.
Actully if there was not so much direct meddling with artificial rate increases from this administration and the direct approvals from Rainwater on down on rates. OGB may be competitive with both companies. 40,000 State employees think so. not to mention the $10 million that OGB puts in the trust monthly. $500 million to date. More money to pay claims.