If anyone—ANYONE—in charge at the Division of Administration (DOA) or the Office of Group Benefits (OGB) knows what they’re doing, please contact us immediately because we have given up all hope that the Jindal administration in its entirety has the first clue.
The following is the latest news release from OGB (through DOA, we’re certain; no one would dare take this responsibility on without the prior blessings of Commissioner of Administration Kristy Kreme Nichols.
But it is ample evidence that these are the people Jimmy Breslin had in mind when he wrote The Gang that Couldn’t Shoot Straight.
After all the planning, all the news releases, all the email blasts, all the expenditure of time and money (we would add talent to the list, but that would generate instant doubt in the minds of our readers), OGB and DOA now suddenly shift gears with this.
Here is the news release (with our comments in boldface type):
The Office of Group Benefits announced Tuesday it would extend the annual enrollment period for its 2015 health plan options through the end of November 2014. The enrollment period will now begin October 1 and last through November 30. The health plan changes are scheduled to begin March 1, 2015 instead of January 1 when the plan year begins.
The enrollment period for supplemental insurance products, including dental, vision and life insurance will be extended through November as well. Those plans will take effect January 1 along with flexible spending plans. Flexible spending accounts allow employees to set aside a portion of their paycheck to pay for qualified expenses before taxes are deducted.
“We take the concerns of our members very seriously (We got our butts handed to us by legislators last week) and want to do everything we can to ensure they have the time and resources necessary to make their plan choice,” said Commissioner of Administration Kristy Nichols. “Shifting our timeline will give people the chance to get accurate information and better understand their options.”
(What she means, of course, is now members will have an extra month to select a method of cutting their own throats.)
In addition to the extended time frame, OGB will allow retirees who are enrolled in an OGB health plan option, either as primary or secondary coverage, to remain in a comparable option without having to re-enroll. Retirees interested in Medicare Advantage plans are still required to enroll by December 7 for the plan year that begins January 1. If no action is taken by the end of the enrollment period, retirees will remain in the option most comparable to their current selection. Active employees who take no action will be enrolled in the Pelican HRA 1000 option, a new choice that offers up to $2,000 in employer funding that offsets out-of-pocket costs. (We hope that will discourage the pitchforks and torches at least until Gov. Jindal can finish his absentee term.)
Several new options with lower premiums and increased employer contributions are available beginning March 1. Members are encouraged to use the additional enrollment time to make the selection that best fits their needs. Most members will remain in their current plan through February 28, unless they choose to make a change. However, members who wish to remain in or select a Vantage plan must make their selection effective January 1.
As health care costs across the country continue to rise (We’re still blaming Obamacare for everything—even the Saints’ poor start), OGB and other employers have had to make changes to benefit offerings in order to continue to pay claims. While OGB maintains a reserve fund that contained more than $370 million in cash at the end of fiscal year 2014, the cost of claims currently outpaces the revenue received through premiums each month (We won’t bring up those premium reductions again; we’ve heard enough about those).
Last week, OGB announced it would begin the process of promulgating the schedule of benefits (but only after Reps. John Bel Edwards and Kenny Havard scalded us in that committee hearing). Sending fiscal and economic impact statements to the Legislative Fiscal Office (LFO) begins the promulgation process that will make OGB’s benefits a part of state law. Once the LFO approves, the rules will be sent to the Office of the State Register, the President of the Senate, the Speaker of the House, and oversight committees. The committees will then send a recommendation to the governor for approval. OGB expects the regular rules to be promulgated by March 1 (We hope legislators don’t remember that we said we couldn’t extend this past the first of the year).
OGB is also issuing emergency rules (Will that be emergency rule number 42 for OGB? We’ve lost count) to publish the formulary and prior authorization changes that took effect in August for active employees and retirees without Medicare. Those changes will take effect in January for retirees with Medicare, in line with the Medicare plan year. Emergency rules have the same effect as promulgation of regular rules, for up to 120 days. They will take effect immediately and continue through the administrative process.
Information on the 2015 plan options is available on OGB’s annual enrollment website at www.annualenrollment.groupbenefits.org<http://www.annualenrollment.groupbenefits.org>. (Or you can totally waste your time by calling Ansafone.) Members are receiving decision guides in the mail that outline each plan in detail. 43 meetings are being held across the state in addition to live webinars for employees and retirees. OGB has also developed a cost calculator tool that allows members to compare plans and out-of-pocket cost side-by-side as well as a one-sheet that compares last year’s plans to the upcoming year’s options. Additionally, customer service hours have been extended to 7 a.m. through 7 p.m. Monday through Saturday.
Louisiana Voice 
Thanks, Tom. I noted with interest that my representative, Representative Erich Ponti, did not bother to come, despite the fact that driving across town should not have been a problem, and wasn’t for 69 other members. Perhaps if he was really there, he will let us know.
My rep.,Hunter Greene, didn’t see fit to be there either, what with his hometown traffic and all. Of course he’s term limited and too busy running for family court judge to worry about state employees and retirees in district 69. This lack of concern won’t look too good on his resume for family court. Let’s all return the favor and vote for his opponent in November.
Don’t feel slighted “state53”, as both my legislators were there, Dan Claitor and Steve Carter, but only Mr. Claitor spoke on behalf of me and his constituents. I guess because Mr Carter had something wrong with his leg (which did not keep him from parading in and out of the overflow room where I was seated) was reason enough that he could not speak on behalf of his constituents. That’s ok! I WILL REMEMBER who served me and who didn’t at election!
My representative, Raymond Garofalo of House District 103 stayed from 10 AM until after 5:40 PM. when I left. In view of his voting record, I doubt that he suddenly cares much about state employees, but I guess he is thinking about the fact that if he wishes to remain in office, he has run for re-election next year. He knows that he has already angered the teachers & public school staff in his district (NOLA East, St. Bernard & Plaquemines Eastbank) in 2012 by voting for ACT 1 (School Vouchers) & ACT 2 (Eliminate Teacher Tenure) & against all attempts to amend these laws in fairness to public schools. He was one of a few freshman reps put in place by Jindal with Koch Bros/RGA funding like chess pieces on a board.
I hope this means that he is worried because a worthy opponent is planning to run against him! I am hoping so, really hard!
@LA Educator: Oh you’re in his district too? Poor us. 😦
Can’t wait to see if, and who it is, anyone runs against him. Fingers crossed on that one.
Since these people are clearly smarter than any of us and never make mistakes, this must be part of a master plan we are all too stupid to see or understand. Therefore, who knows what tomorrow will bring? I’m certainly not smart enough to even guess.
Here’s what Obamacare did:
1. By requiring everybody to enroll in a healthcare plan (thru your employer or thru the exchange), it added previously uninsured younger employees as premium paying members to the state employees healthcare system. These new younger and healthier members did not add additional costs, but did add revenue flowing into the reserve account to pay claims.
Here’s what Jindal did to subvert the above effect of Obamacare:
1. Refused to expand Medicaid under Obamacare to cover lower paid employees, resulting in increased costs of medical care in general.
I have Medicare & PPO from Blue Cross through the State. It looks my deductible will go from $300.00 to $1,000 this year. Blue Cross hardly paid anything before.
Glo
Ouch! Would it be better to drop OGB Blue Cross and find another supplementary plan?
This is welcome news, but not near good enough! I tried today to get on one of their webinars, what a joke. It never connects even when you follow the help tips from the company that’s hosting it!
Do not be fooled by any of this. This is purely an attempt to buy the time to comply with the APA so they can get past the AG’s opinion. Do not back down and do not think for one minute anything has changed.
yep!
Agree!
Why, oh why do they keep beating this drum? Yes costs have risen, but they have risen at a lower rate than previously.
http://www.latimes.com/business/la-fi-0107-healthcare-spending-20140107-story.html
Do these folks underestimate our intelligence so much that they don’t think we can use “der google” ? 👿
I heard that Kristy Kreme was forced to admit that the ACA had nothing to do with these increases and benefit cutbacks at OGB in the morning session and yet on the evening news they were still using it as an excuse.
and yet on the evening news they were still using it as an excuse.
Now that’s just pathetic.
I pointed this out to a reporter at our esteemed daily the day the press release “explaining” this situation came out. Reports of it by that same reporter never changed.
I also posted a link similar to the one you have above ( the site charted the change in health care inflation over the past several years showing a dramatic DECREASE over the last couple of years) in a comment on the Greater Baton Rouge Business Report website and urged their readers to Google any site they would like for confirmation.
Here is that link: https://ycharts.com/indicators/us_health_care_inflation_rate
Notice this key statement at the very top of the page:
“US Health Care Inflation Rate is at 2.09%, compared to 2.61% last month and 2.34% last year. This is lower than the long term average of 5.48%.”
Hello out there in MSM land. Do you think your readers are too dumb to understand this or would you just rather we not have to tax our little brains trying?
Stephen, I have pretty much given up on the MSM doing much of anything to contradict the talking points they have been given. I don’t know if it’s laziness, having to do something other than a copy/paste or whether the “new” journalism doesn’t give them time to do any research on something. However, it’s pretty sad.
Wonder what process would be required to get the Legislative Auditor to go in and do a full audit and actuarial study of the books and reserves?
Research by the Legislative Fiscal Office has been reported several times in the MSM, but only in gross numbers. They have apparently done significant research on the issue already, but I have not seen an actual report of it.
Something that would be an immediate help would be if they could report on how much of the increased claims cost was administrative and how that administrative cost compares to the administrative cost of OGB claims processing pre-privatization.
If they don’t have this information, surely Mr. Purpera can see that a detailed audit as you suggest is in order notwithstanding the fact the OGB board has just decided to get an actuary.
OGB laid off all the workers effective 09/01/14 due to lack of work then hire 200 workers from anserphone for 1.3 millions and brought 22 peolplefrom DOTD IT Dep. to answer call at OGB now that is double deeping. How you take state workers from thier daily duties and come work at OGB now this is against the law. We need answers
From what I understand, our legislators are in a plan called LSU First. I’d really like to know what that offers! And why isn’t that offered to state workers? I would bet it’s a hell of a lot better than what OGB is offering!
Information on LSU First can be found at http://www.lsufirst.org/
While it is a better plan, not all legislators are in the LSU First plan, though that option is open to them and their staff members. But not ever legislator has exercised that option. See earlier story of LouisianaVoice on this subject.
My representative, Eric Ponti, as reported above by another of his constituency, did not take the time and effort to attend. I have emailed and spoken to him about this, but he is NOT INTERESTED.
Let’s all remember that when he runs for reelection next year – he was NOT INTERESTED!
He did not respond to me either.
Confused? Mad as Hell? no not you, and certainly not Jindal. Facts, law, and the truth do not exist in a mindset found in most Republicans. They have their eye on the tax dollar and are doing a fantastic job in turning us against us. The medical health insurance plum is to privitize the largest book of business out there, the Veterans Administration. Stay tuned. ron thompson
I do not ask for much. I just ask that Jindal gives back the 300 or so million dollars he transferred from OGB to the General Fund. That was our money and he did not ask our permission to transfer it.!!!!!! (Noticed that I used his staff’s words. They like to use the word “transfer” instead of “take”.) I just love people who believe that using these carefully chosen words will help you think there is nothing illegal really going on. And they talk about Edwin Edwards???Come on people!!!! Do they really believe that we think they are doing us a favor by delaying the enrollment period for a month? How is this going to help the gentlemen that actually cried at the last meeting when he said he would not be able to afford his prescriptions under the new and so-called better plans that will be offered? If there was ever a time for us to unite; it is now! I bet if enough state workers and retirees show up at the capitol, they will reconsider this option. But it cannot just be one or two people to actually complain and make a statement that counts and gets noticed. We cannot blame anyone who messes with our insurance if we do not do anything about it. We should take the responsibility to fight for our rights! Remember we can be powerful in numbers. Are you going to be the one to just sit and complain, and just let this happen? Or, are you going to try to get your legislature, and other elected officials to stop this stealing???????
I received a notice yesterday from Rep. Havard’s office announcing 2 OGB meetings that have now been scheduled in E. Feliciana Parish.
The meetings will be held at East LA State Hospital, Main Recreation Hall, 4502 Highway 951, Jackson, LA 70748, Phone 225-634-0100.
The meetings are scheduled for October 24. Retirees with Medicare will be at 2:30 p.m., and Actives and Non-Medicare Retirees will be at 5:00 p.m.
Tom, is there some way that we can contact you directly when we get info. like this so you can publish it?
Thanks!
I really appreciate your efforts to share background information on the proposed changes to OGB benefits. If I’ve missed this in a post, I apologize, but I don’t recall seeing a counter argument to DOA’s rationale that the state covers 75% of the cost of OGB benefits. While it is true that the state pays 75% of employee premiums, many (most?) state employees do not insure only themselves. They insure their spouse and/or their children. The state does not subsidize the cost of insuring spouses or children, so if DOA based their decisions on the premise that 75% of the OGB “trust fund” belongs to the state, that would appear to be a false premise would it not? Is that something that has been addressed?
Sent from my iPad
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@stegie51 – That is a VERY good point that I have not yet seen brought up. You are absolutely correct. My portion of my premiums is miniscule compared to what I pay to have my husband covered.