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“This is what happens when Gov. Jindal removes members from the committee.”

—Rep. Katrina Jackson (D-Monroe), on Friday’s House Appropriations Committee approval of the $1.1 billion contract with Blue Cross/Blue Shield to serve a third party administrator (TPA) for the Office of Group Benefits.

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The deuces were wild in Friday’s vote by the House Appropriations Committee to approve the $1.1 billion contract between the state and Blue Cross/Blue Shield (BCBS) which calls for BCBS to take over the Office of Group Benefits (OGB) Preferred Provider Organization (PPO), which provides health care coverage for about 62,000 state employees, retirees and their dependents.

The Senate Finance Committee, meeting jointly with the Appropriations Committee, was a foregone conclusion insofar as the Piyush Jindal administration is concerned; Senate Finance was overwhelming in favor of knuckling under to Piyush all along. It was the Appropriations Committee that displayed a streak of independence last week when it voted 16-9 in favor of an immediate vote on the contract.

That motion, by Rep. Katrina Jackson (D-Monroe) prompted Commissioner of Administration Kristy Nichols to pull the proposal until this week.

Within hours of that vote, two members of the Appropriations Committee, Vice Chairman Cameron Henry (R-Metairie) and Joe Harrison (R-Gray) were removed by House Speaker Chuck Kleckley (R-Lake Charles) as indisputable proof that he is Piyush pliant.

Henry and Harrison were replaced by Reps. Bryan Adams (R-Gretna) and Alan Seabaugh (R-Shreveport).

This time, the vote was 15-9 in favor of the contract with Adams and Seabaugh voting in favor.

Also voting in favor were two members who were absent from last week’s meeting—Reps. Patrick Connick (R-Marrero) and Jack Montoucet (D-Crowley), and two members who got the message after the demotion of Harrison and Henry and flipped last week’s “no” votes to emphatic “yes” votes this week: Reps. Henry Burns (R-Haughton) and John Schroder (R-Covington).

Two other members who voted with Jackson last week were absent Friday: Reps. Brett Geymann (R-Lake Charles) and James Morris (R-Oil City).

Now that the contract has gained the legally required approval of the two legislative committees, the next likely phase will be the courts if unsuccessful bidder United Healthcare files suit against the state as expected.

Litigation could ensue because of the selection process for the contract, which is not to exceed $1.1 billion. The BCBS bid is said to have been as much as $15 million more than that of United Healthcare.

Jackson, who had sought—and received—an attorney general’s opinion that the contract required legislative approval, said Friday’s action came despite testimony Friday that the contract, besides resulting in 111 OGB employees losing their jobs, would cost the state “millions in additional dollars.”

She said new budgetary request shows a “significant increase” in what the state will spend on claims.

Testimony from the Legislative Fiscal Office and an OGB CEO Charles Calvi did little to shed any light on questions raised by committee members but it was all but obvious from the outset how the vote would come down.

While the Appropriations Committee vote was virtually a 180 reversal of last week’s vote (16-10 in favor Friday as opposed to 16-9 opposed last week), the Senate Finance Committee’s vote was 10-3 in favor Friday compared to last week’s 11-3 vote to defer action until this week. Voting against both deferral last week and the contract this week were Sens. Sherri Smith Buffington (R-Keithville) and Ed Murray (D-New Orleans). Sen. Dan Claitor (R-Baton Rouge) voted against deferral last week but in favor of the contract this week. Sen. Fred Mills (R-New Iberia), who voted in favor of deferral last week, voted against the contract.

“This is what happens when Gov. Jindal removes members from the committee,” Jackson said of Friday’s vote.

“The vote last week was a vote based on the will of the legislature. The vote this week I a vote based on Jindal violating the separation of powers clause and removing members from the committee based on their vote(s).

“Testimony showed that this move would not result in state savings yet (and) because of Jindal’s overlapping interference in the legislative process, some members were backed into voting for it.”

Sen. Gerald Long (R-Natchitoches) told LouisianaVoice after the meeting that he voted in favor of the contract “because BCBS is already administering 75 percent of OGB’s claims and is doing a good job.”

He did not address the question of why he voted to put 111 OGB employees out of work who were doing an equally good job administering the remaining 25 percent of OGB claims.

One of the phrases most repeated by witnesses who spoke out against the contract as committee members talked among themselves, texted and walked around the room was “why fix something that is not broken?”

That question is yet to be addressed by anyone on either committee or from DOA.

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If observers thought that Commissioner of Administration Kristy Nichols was a little miffed at the unexpected turn of events at last week’s joint meeting of the House Appropriations and the Senate Finance committees, perhaps they would have liked to have been a fly on the wall Thursday afternoon.

Reports indicate that Nichols and staff were still scrambling to compile support documentation during an 11th-hour planning session before Friday’s second joint meeting of the two committees.

The meeting is scheduled for 8:30 a.m. Friday at the State Capitol.

Last week’s meeting ended when she abruptly pulled the proposal from the agenda after the two committees had been meeting for just over four hours. She claimed the move was to provide legislators additional information but everyone—including Nichols—knew her move was a calculated one after she realized there were not enough votes in the Appropriations Committee to push the contract through.

Concurrence by both the House Appropriations and Senate Finance committees is required for concurrence on the proposed contract.

Within hours of the meeting, two Appropriations Committee members who had thrown hard questions at Nichols, who was making her debut before legislators as Jindal’s new commissioner of administration, were replaced by House Speaker Chuck “Chicken Klucker” Kleckley (R-Lake Charles), apparently as a warning to the remaining members that they should fall in line or suffer the wrath of the Piyush Jindal administration.

It remains to be seen if the move will whip the other 14 Appropriations members who last week voted against the administration in line or if it will stiffen their resolve to assert their independence of the governor’s office and re-establish the legislature as a separate branch of government instead of an extension of the governor’s office as it has been for nearly five years now.

The new flurry of activity apparently stems from Nichols’ attempts to figure out how State Rep. Katrina Jackson (D-Monroe) arrived at numbers that sharply contrast with the administration’s estimate of a $20 million savings with its proposed contract that calls for Blue Cross/Blue Shield to take over as third party administrator (TPA) for the Office of Group Benefits (OGB) preferred provider organization (PPO) program.

Jackson, using figures provided the legislature during the budgetary process, has calculated that the takeover by BCBS, instead of saving the $20 million, as the administration claims, will actually cost the state more than $154.8 million even as it costs more than 100 OGB employees their jobs.

She said that figures provided legislators during the budgetary process this year project a $24 million decrease in OGB’s administrative costs, a decrease of nearly $558 million in the PPO claims payments and a decrease of $3.5 million to United Behavioral health for disease management.

That totals about $585.2 million against a $740 million increase in administrative fee payments to BCBS, or $154.8 million in additional costs.

Other issues that could arise is the 10-day notice requirement for committee meetings. Jackson maintains that Appropriations Committee Chairman Rep. Jim Fannin (D-Jonesboro) did not provide the required notice to committee members and to the public.

Fannin has not responded to her objection.

One other question that could come up revolves around the bid by BCBC, which experts say will cost the state $15 million more than the bid of United Healthcare.

Sources have indicated that United Healthcare is prepared to file a lawsuit against the state if the contract with BCBS is approved and goes into effect in January.

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Mitt Romney’s loss to President Obama on Tuesday may have provided the perfect opportunity for Gov. Piyush Jindal and de facto governor Timmy Teepell (or so they must certainly be thinking right about now).

Sure, Jindal did the dutiful thing and ran around the country like the proverbial chicken with its head chopped off, talking to throngs of avid Romney supporters that sometimes numbered as many as a dozen or so.

And sure, he said all the right things at those massive gatherings.

But deep down, you have to know that Jindal and Teepell are smirking just a little right now and have already begun their drive to the White House for 2016.

Jindal is an impatient man as witnessed by his rush to push through a radical education agenda and his attempt to completely revamp the state retirement system even though his plan would have cut some state employees’ pensions by as much as 85 percent (and the vast majority of state employees do not qualify for social security because they have never worked in the private sector and state employees don’t pay into the system).

Nor will the vast majority of state employees qualify for Medicare for the same reason. But that fact did nothing to stop him from slashing Medicaid.

Jindal also rushed through his plan to privatize state government, beginning with the ill-fated takeover of the Office of Risk Management by F.A. Richard and Associates (FARA) of Mandeville at an initial contract cost of $68 million to the state. Eight months into its contract, FARA was requesting a $6.8 million amendment to its contract. That was precisely 10 percent of the original contract amount. There is an obscure regulation that allows a one-time amendment to contracts for up to—you guessed it—10 percent.

But wait! There’s more! Less than a month after the contract was bumped up to nearly $75 million, FARA upped and sold the contract to an Ohio company who kept it for about four months before selling it to a New York company.

There was a hitch in all those transactions but again, did it slow Jindal down? Not a bit. That hitch was a clause in the FARA contract that supposedly prohibited the transfer of the contract without prior written approval of the Division of Administration (DOA). When asked for a copy of that prior written approval, DOA responded without a shred of concern and even less of an explanation that no such document existed.

Jindal has plowed headlong into a policy of closing state hospitals with little or no concern of the effects it has to area residents who rely on the hospitals for treatment of injuries, disease and mental illness.

He has been similarly reckless in his closures of state prisons, throwing hundreds of state employees out of work. In both the hospital and prison closures, he has neglected to give area legislators a heads-up before taking the action to close the facilities, an oversight over which lawmakers continue to seethe.

He has attempted with equal urgency to enter into a contract with Blue Cross/Blue Shield (BCBS) as a third party administrator (TPA) for the Office of Group Benefits (OGB) Preferred Provider Organization (PPO) medical coverage for about 62,000 state employees, retirees and dependents.

Facing certain defeat of the proposed contract at the hands of the House Appropriations Committee last week, Jindal’s new Commissioner of Administration Kristy Nichols abruptly pulled the proposal from the agenda of the joint meeting between the Appropriations Committee and the Senate Finance Committee.

It was a less than auspicious coming out party for his new commissioner of administration. A smashing debut for Nichols it was not.

But the administration is back for another attempt this Friday at 8:30 a.m. The makeup of the Appropriations Committee will be slightly different, however, after last week’s Black Friday purge of the committee by Jindal.

And make no mistake, while it was House Speaker Chuck “Genuflecting Gelding” Kleckley (R-Lake Charles) who announced the removal of Reps. Cameron Henry of Metairie and Joseph Harrison of Gray, the word came from Jindal—or Teepell. Both Henry and Harrison are Republicans but both also violated the cardinal rule against questioning anything put before them by Pontiff Piyush.

Harrison said as much when he revealed that the administration historically provides questions to committee members that they are allowed to ask. At the same time, he said, they are instructed not to deviate from the list by asking any questions other than those on the list.

So now Jindal is making one final push to get his contract with BCBS approved.

It’s doubtful he will make a personal appearance; he almost always sends his flunkies to carry the water for him.

It’s also doubtful if Nichols will repeat last week’s faux pas of tell committee members she would “dumb down” her explanation of the proposed contract for the benefit of lawmakers. It’s one thing to close a hospital or prison without informing the legislators in the area. It’s quite another to sit before them and call them dumb to their faces.

The point of all this is this: don’t look for Piyush in Baton Rouge in the remaining three-plus years of his term of office. He’s not likely to be spending much time in his fourth floor office.

A quick drive through on Wednesday revealed that Teepell’s Jeep was parked—as always—in the back parking lot of the State Capitol. This is a former Jindal staff member who resigned more than a year ago to run the Southern office of OnMessage, a Maryland political consulting firm. OnMessage has been paid hundreds of thousands of dollars by Jindal’s campaign fund over recent years but more than a year after Teepell opened that Baton Rouge office, there still is no local address or telephone number for the firm.

If Teepell is doing anything at all for OnMessage, he is doing it—as a private citizen—from the State Capitol’s fourth floor governor’s office. We have mentioned this on at least two other occasions but still the attorney general and the inspector general’s offices have done nothing to bring the misuse of the public office for private purposes to an end.

But the boy wonder we know as Piyush is about to hit the road in a fundraising blitz that will, in all likelihood, dwarf that of his re-election fundraising efforts of a year ago.

He is going to be running full time for president and he is an impatient man. He did not want to wait eight years wasting his valuable time in some obscure federally appointed position in the Romney administration (though doubtless he would have taken a higher profile position if it could keep his name in the forefront). He will serve next year as head of the National Republican Governor’s Association. That will keep his name out there while he ramps up his fundraising efforts.

Now, though, he can hold to the office (in theory if not in reality) of governor of Louisiana for three years while keeping his travel itinerary full. His term will end in January, 2016—just in time for him to become a full time candidate.

Even as he does so, however, there is a significant lesson to be learned from Tuesday’s results—a lesson quite likely overlooked by JindalTeepell.

The Democrats learned from the Reagan landslides that it was going to have to move from the far left more towards the center in order to gain the acceptance and trust of the American electorate. It did and the result was Bill Clinton.

Likewise, to gain the trust of the American people, the Republican Party is going to have shed itself of the stigma it now carries as a refuge for the Tea Partiers. Simply put, the GOP is going to have to shift away from the right right, becoming less a haven for the extremists with more appeal to the centrists.

Unfortunately for Piyush (and perhaps fortunately for the rest of us), he seems incapable of making such a shift. He has shown himself to be stubborn, obstinate and convinced of his own infallability. He is simply unwilling to compromise and that, in the end, will be his undoing.

In the meantime, don’t look for him in Baton Rouge during the next three years.

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“Everything they (legislative committees) do is scripted. I’ve seen the scripts. They hand out a list of questions we are allowed to ask and they tell us not to deviate from the list and not to ask questions that are not in the best interest of the administration.”

—Rep. Joseph Harrison (R-Gray), on his removal from the House Appropriations Committee by House Speaker Chuck Kleckley (R-Lake Charles) on Friday, one day after Harrison voted against the Jindal administration on the proposed contract between the Office of Group Benefits (OGB) and Blue Cross/Blue Shield of Louisiana (BCBS).

“I was elected by the people of (House) District 82 on a platform of fiscal responsibility. It is the job of legislators…to ask difficult questions necessary to ensure that taxpayer dollars are spent efficiently and wisely.”

—Rep. Cameron Henry (R-Metairie), on his removal from the House Appropriations Committee on which he served as vice-chairman following his vote against the Jindal administration on the proposed OGB contract.

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