It’s been nine years now that LouisianaVoice has existed as a means of shining a light on political wrongdoings, mismanagement, corruption and general shenanigans and otherwise questionable activities.
There have been times when I was privileged to have broken a significant story. Other posts might be classified as filler, nitpicking or just general bitching about how those in guv-mint power are trying to slip it to us mere mortals.
That’s because I believed—and continue to believe—that elected officials, rather than responding to the wishes of constituents, give far more favor to the desires of special interests. Those special interests have a knack for helping politicians understand just how special those interests are by writing checks with lots of zeroes.
When I launched LouisianaVoice, the primary impetus was Bobby Jindal’s attempts to privatize the Louisiana Office of Group Benefits which administers health insurance benefits for state employees.
On top of those efforts, Jindal “reduced” premiums in order that the state might also be able to reduce its matching share of premiums. That move was not one to benefit state employees; it was to allow Jindal to pull the savings on the state’s premium to help plug the gaping hole in the state budget.
The harmful side-effect, of course, was to gut the $600 million fund from which OGB was paying benefits to the point of virtually zeroing out the balance.
I wrote extensively about Jindal’s fiscal not-so-sleight-of-hand and more or less got myself removed from Jindal’s Christmas card list.
Well, guess what? They’re back trying to tinker with OGB again with House Bill 325 (CLICK HERE) by Rep. Michael Echols (R-Monroe), which is being opposed by the Retired State Employees Association because the RSEA feels it restricts freedom of choice for retirees.
Basically, HB325 “provides that if a state or school district retiree without dependants (sic) elects to enroll in Medicare Parts A and B, his continued participation in Office of Group Benefits (OGB) health plans is limited to Medicare Advantage Plans only.”
The bill would retain the portion of the present law which authorizes state employees to participate in the federally-managed Medicare program but would restrict continued coverage by retirees who have elected to enroll in Medicare Parts A and B to participation in a Medicare Advantage Plan.
So, what, exactly does that mean?
It means that retirees already on a Medicare Advantage plan would not be affected but those with no dependents who are not participating in one would be required to enroll in a Medicare Advantage plan such as People’s Health, Aetna, Cigna, and (ahem) Vantage Health Plan.
So, what’s the big deal about Vantage Health Plan, you say?
Well, nothing. Except that Rep. Echols just happens to be director of business development for Vantage.
Dr. Patrick Jones is CEO of Vantage Health Plan and Vantage Holdings.
He is also Rep. Echols’s father-in-law.
On Sept. 6, 2018, Vantage Health Plan entered into a contract with OGB to provide HMO services for state employees. The value of that contract is $140.5 million.
Seven weeks later, on Oct. 29, 2018, Vantage Health Plan signed a contract with OGB to provide Medicare Advantage plans for Medicare-eligible OGB members. The value of that contract was $12 million.
Rep. Echols and his immediate family members collectively own 1.58% of Vantage Holdings, well below the 25% ownership deemed to be a “controlling interest” by the Louisiana Commission of Governmental Ethics.
An ethics opinion (CLICK HERE) Echols by David Bordelon, dated March 9, 2020, however, said, “Your duties as Director of Business Development include no involvement, control, or authority regarding any aspect of the contract with OGB. You stated that you are paid a salary and that you received no direct financial benefit, such as a commission, as a result of the Vantage contract with OGB. Further, your father-in-law, Dr. Patrick Jones, has stated that his compensation is unaffected by the OGB contract.”
[And I suppose any increase in the stock price of Vantage as the result of a lucrative state contract would not “affect” any compensation received by either man.]
But never mind, he’s got something that the garden variety state employee doesn’t have: legislative immunity.
Bordelon’s five-page opinion noted that “Generally, the various provisions (of state ethics laws) would prohibit you from participating in matter in which you, your father-in-law, or Vantage Health Plan, Inc. have a substantial economic interest.”
But then he went to explain that a court opinion back in 2008 ruled that the “Legislative Privileges and Immunities Clause of the Louisiana Constitution…provides protection to a legislator when acting in his legislative capacity against a potential violation.”
As the Church Lady character on Saturday Night Live used to say, “How convenient.”
Keep in mind just what impact any opinion by the Ethics Commission actually means since Bobby Jindal “reformed” state ethics in 2008 as one of his first acts after taking office. Pending ethics complaints against at least two legislators (one of whom is now a college president) immediately went away.
And one doesn’t have to look too far to see how this bill, if passed, could be a windfall for state-approved Medicare Advantage companies like Vantage.
It’s not as though Vantage didn’t already know how to game the system before getting its director of business development elected to the state legislature.
Way back in 2014, LouisianaVoice had a story about how Sens. Neil Riser (R-Columbia), Mike Walsworth (R-West Monroe), Rick Gallot (D-Ruston), and Francis Thompson (D-Delhi) steered SB 216 through the legislature that allowed Vantage Health Plan to purchase the state-owned former Virginia Hotel at 122 St. John Street in Monroe without going through the state bid process even though there was at least one other potential buyer.
Documents obtained by LouisianaVoice at the time clearly showed how the bid process was circumvented by the Jindal administration in order to allow Vantage to purchase the property. Click HERE to read that entire story.
Since 2007, the year of Jindal’s first successful run for governor, political contributions have flowed from Vantage, Dr. Jones and his wife and Echols.
During that period, Vantage poured $130,000 into various state campaigns while Jones and his wife contributed $52,000 and Echols chipped in $8,500.
Among the recipients:
- From Vantage: Insurance Commissioner Jim Donelon ($11,500), Gov. John Bel Edwards ($15,000), Bobby Jindal ($1,000), Sen. Neil Riser ($3,000), former Sen. Mike Walsworth ($5,000), and Rep. Francis Thompson, a member of the House Appropriations Committee which will hear HB325 ($5,100).
- From Dr. Patrick and Mary F. Jones: Donelon ($3,000), Gov. Edwards ($10,500), Jindal ($15,000), Riser ($500), Thompson ($9,000), Walsworth ($3,000).
- From Echols: Jindal ($950) and Eddie Rispone ($2,500).
Sorry folks, but HB325 just doesn’t pass the smell test.
Louisiana Voice 
There is no better word for this than “sickening.” In addition to the obvious ethical problems, Medicare Advantage Plans only work well for certain people.
We’ve all seen the commercials for Medicare Advantage Plans, including the ones with Broadway Joe. Why, a thinking person might ask themselves, do those of us in Medicare, Parts A and B, not immediately sign up for one of these fabulous plans and even get rides to our doctors appointments, in addition to vision, dental, Part D prescription equivalents, etc? Several reasons, not the least of which is that you are no longer in Medicare, though such plans are often referred to as Medicare, Part C.
Here is a link to an objective view of the disadvantages of such plans:
https://www.investopedia.com/articles/personal-finance/010816/pitfalls-medicare-advantage-plans.asp
So, when Broadway Joe says he found out he wasn’t getting all the benefits he deserved, including home delivered meals – and the smooth talking lady on the Humana commercials makes you believe you are a fool for not taking advantage of these plans, remember what your Mama always told you about things that sound too good to be true.
These plans DO work for some people, but only in limited circumstances and when they are pretty healthy to begin with. But, hey, why should state retirees have any choice, right Mr. Echols?
Thank you as always, Mr. Aswell, and everyone who supports and contributes to your blog. As a rank & file La. Civil Service employee about to retire in 7 weeks, the info you provide is priceless. I thank you from the bottom of my heart! God bless you all!
More good stuff from Mr Aswell. Thanks a lot.Hope your back is better. Mine is a bitch.
A group of retirees and future retirees are working together to oppose HB325. So far we have been spreading the word and sharing letters and emails sent to our elected representatives about this. Amazing how much this group has accomplished in just over 24 hours! I have shared your article with them, Tom, and one of us will be posting contact information for those who might want to help as soon as we have that set up. Thanks so much for tackling this!
For anyone interested in joining the efforts of the group fighting HB325, contact us at HRheavyhitters@gmail.com.
The Representative in Monroe sponsoring the bill of which you write is Michael Echols not Michael Ellis.
Mary Ann Riddle
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You are correct. My error. Thanks.
Thanks for very solid investigative reporting again Tom.
For those following HB325, despite some earlier rumors that it had been removed or withdrawn, we have learned that while it has been removed from Appropriations Committee, it was only moved from there to the Health & Welfare Committee. It was supposed to be heard by Appropriations TOMORROW. It’s not dead yet.
This bill is clearly an outrageous and self serving abuse of power and abuse of retirees’ right to choose their own health plan according to their needs and desires. Right thinking legislators should scuttle it.
That said, I am covered by Humana Gold Medicare HMO, accessed through my coverage with the Office of Group Benefits through its contracted third party administrator. I could not be more satisfied with my health plan. Since being enrolled in the plan, I have had one surgery and a few MRIs, with reasonable copays. No treatment has ever been questioned or denied. There is no cost for primary care doctor visits and a reasonable copay for specialists. Humana provides nationwide coverage through its vast network, (as opposed to Vantage, which includes only Louisiana providers) which includes every physician, provider, clinic and hospital on my list, with the notable exception of chiropractic care. The monthly premium is zero, paid by Social Security, through which we alI pay for Medicare. The plan provides limited vision and dental coverage, and I get regular care from the same providers I’ve used for decades. Prescription meds are covered with low to reasonable copays, including many name brand drugs. Several attractive preventive care services are offered at no cost, including the Silver Sneakers fitness plan at various health clubs and fitness centers. Customer service has been quickly responsive to questions.
Another benefit through OGB for Medicare HMO enrollees is a Health Reimbursement Account, which reimburses many out of pocket medical expenses, including the Medicare premiums paid to Social Security.
I took care of my mother in her final years and paid enormous sums for her medications, hospital expenses and doctor copays under regular Medicare. Someone suggested the Humana plan, which I resisted because “if it seems too good to be true, it probably is.” I finally put her on it to see how it would benefit her. Her $1000 a month prescription drug bills were cut in half and copays to the six doctors she saw regularly went way down. She was hospitalized five times in two years, including two hip replacements and extensive physical therapy, all with excellent care and coverage.
So, I explored the advantage HMO plans available through OGB when I went on Medicare (and I found that Vantage and another local plan were not beneficial to covered friends with severe chronic illness). I chose my plan and stay with it, as my experience has been highly satisfactory, but it was MY CHOICE. It may not work for everyone.
No one should be forced into a health insurance plan because a venal, self-serving legislator has an interest in it. Because however little Rep. Echols and his family own in Vantage, I’d bet the farm that as director of business development, he will get a big bonus and a big permanent pay raise when and if he brings in a lot of new business from state retirees who enroll. So if the bill passes, and you are forced into a Medicare HMO, choose a more attractive plan. Because, although the bill as it is currently written doesn’t specify which HMO retirees must choose, I’d bet that somehow, people will be steered to a certain plan, based in Monroe and managed by Echols and his father in law. Hey, it’s Louisiana, and there’s big money involved.
The website doesn’t show movement on this bill? Do we know when it will be heard? If it is not heard pretty fast, it will never move anywhere!
HOUSE OF REPRESENTATIVES
Notice of Committee Meeting
Committee on Appropriations
Will meet at: 9:00 a.m. Date: Friday, May 8, 2020
Location: Committee Room 5
Remarks:
Overview of the appropriations proposed in House Bill No. 105 of the 2020 Regular Session for:
Higher Education
Louisiana Department of Health
COMMITTEE ROOM 6 TO BE USED FOR OVERFLOW
HB325 has been pulled from the Appropriations Committee and reassigned to the House Health and Welfare Committee where it has not as yet been scheduled for hearing.
Tom, if it has been removed to H&W, the legislature’s website does not reflect so. Nor does Legiscan. As I am typing this, I just received an answer to a question I texted to a reliable source at the House. The bill is still in App. Maybe he is trying to get it to H&W, a committee on which he sits, but it has not been moved.
Yes. It would seem to still be sitting in Appropriations. Hopefully, it will simply remain dormant until adjournment. Just in case, I have written my Representative and Senator.
HB325 is atrocious to the senior retired state employees. What I have not seen on this site is that if a state employee signs up for any Medicare program then they lose the medical insurance through OGB such as Blue Cross. If I am wrong about this, please someone let me know. However, I have been retired for ten years and do not want to change any insurance other than what I have chosen for myself and not at something someone else has chosen. I have contacted my representative who is on this committee to vote NO for this bill.
You would not lose your OGB coverage so far as I know. I’m a retired state employee who has Peoples Health Medicare Advantage and I’m still on OGB. BTW, I’ve been very happy with Peoples Health for 9 years now. This issue is simply a matter of choice and a transparent effort by a legislature to drive more business to his company, pure and simple. There’s no other logical reason for him to push this bill.
Repeating what Tom already said, AS LONG AS YOU GO THROUGH OGB TO SELECT YOUR MEDICARE ADVANTAGE PROGRAM, including through their third party administrator, then you remain part of the OGB family and can select any offered plan each year. If you go to a sales presentation and sign up for ANY non-OGB health insurance, you are out of OGB for the rest of your life.
Is there a fiscal note on the bill? This should show the economic impact of the legislation – how it would save or cost money for the state. What would be the financial rationale for the legislation – savings for OGB?
No fiscal note.
Well, another great article, thanks Tom, Echols and family reap (or is it RApe) the tax base for gross profits, truly Jindalites/Trumpites, insulated by their Republicanisn. I got invited to join a prayer group (Baptist) for TRUMP. Should I join ???ron thompson
Mr. Aswell, I enjoy your investigative reporting. It reminds me of a man whose journalism style I truly miss, Mr. Ken Booth. Regarding Blue Cross, Vantage, Health, and Act 325, I am surprised nothing has been mentioned about Blue Cross and Blue Shield of Louisiana (“BCBSLA”) having acquired the majority ownership of Vantage Holdings Inc. (“Vantage”), the parent company of Vantage Health Plan back in July 2019. Maybe something has been said or reported about it on your site but I must have missed it.
https://www.cainbrothers.com/transactions/blue-cross-and-blue-shield-of-louisiana-acquires-a-majority-stake-of-vantage-holdings-inc/
https://www.healthleadersmedia.com/strategy/feds-ok-blue-cross-blue-shields-vantage-acquisition-louisiana
https://www.justice.gov/opa/pr/statement-department-justice-antitrust-division-closing-its-investigation-louisiana-health
I am not qualified to determine whether HB 325 is good or bad for state retirees. Mr. Echols informed me it will be good for us. I would like to see something included in the bill that shows me that. The way it is currently written, it seems to limit our health insurance choices.
Two things:
First, you didn’t miss it because I had not reported it. That’s an oversight on my part and I thank you for pointing it out.
Second, Ken was a friend from waaaaay back to my days at the Ruston Daily Leader. A politician would know it was a bad day when he arrived at his office to find Ken waiting for him. He actually wrote a few posts for LouisianaVoice and provided me countless tips on other stories through the years. I miss him.
And three things, actually: thanks for the comparison. I accept that as a compliment.
I read with interest your article dated May 7, 2020 with regard to Mr. Echols proposal of HB 325. You voice the same Concerns of many state retirees that access the exceptional health benefits of OGB. For many of us medical advantage plans do not cover our health issues. I also understand most of those only provide coverage by Louisiana doctors and facilities. That leaves a good many of us on Medicare with Limited options for excellent healthcare that cannot be provided here in Louisiana. I spoke with the LRTA who is lobbying , Mark Wright my representative, and emailed the governor, Mr Zeringue and congressman Steve scalise, but with coronavirus this issue which could impact so many of us is falling behind. Of particular concern is
as you pointed out , the benefit Echols and his father-in-law could derive. In this time of May sweeps in News, for some reason this is not news worthy. Politics or, should I say corrupt politics, at work again. So many of my retired friends from Jefferson Parish and those still working who are close to retirement are aware of what’s going on. We are doing our best to push back and follow this. According to a response of our inquiry to Mr. Zeringue, chair of appropriations, it has been withdrawn; however, the LRTA have indicated in a letter to the retired teachers that it could be re-emerge with amendments or in special session. So is it really dead ?and how dare Mr. Echols present such a bill? This is newsworthy and should be picked up by local tv news. We stand to lose a lot as well as the efforts to mess with our defined benefits in retirement.
Thank you for your article and your continued interest