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Archive for the ‘OGB, Office of Group Benefits’ Category

“We just got the contract yesterday and we need to give people an opportunity to look at it,” said Fannin, who added that the contract was nearly 80 pages.”

—House Appropriations Committee Chairman Jim Fannin, explaining the reason for cancelling Thursday’s joint meeting of the Appropriations Committee and the Senate Finance Committee to consider approving the contract for Blue Cross/Blue Shield of Louisiana (BCBS) to take over operations of the Office of Group Benefits. The governor’s office, however, said the reason for the cancellation was that key committee members were scheduled to be out of town.

That would be an oops moment…

…and another good argument for better communications between legislators and Piyush.

“Although we can be somewhat sure that the administration will continue in its attempt to gain committee votes for approval of this effort, it is our hope that the legislature will continue to stand strong and operate as a separate, co-equal branch of government.”

—State Rep. Katrina Jackson (D-Monroe), in a more plausible prepared statement following cancellation of Thursday’s joint meeting of the House Appropriations and Senate Finance committees to consider approval of the BCBS contract to take over as third party administrator (TPA) of the Office of Group Benefits (OGB). In reality, the meeting was most likely cancelled after Gov. Piyush Jindal’s office realized it did not have the votes for approval of the contract. Jackson is a member of the House Appropriations Committee.

“Legislators’ votes just went up in price.”

—C.B. Forgotson.

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Thursday’s scheduled joint meeting of the House Appropriations Committee and the Senate Finance Committee to consider the approval for Blue Cross/Blue Shield of Louisiana to take over the Office of Group Benefits (OGB) Preferred Provider Organization health coverage has been scrubbed.

The reasons for cancelling Thursday’s meeting vary, depending upon who is doing the explaining.

Appropriations Committee Chairman Rep. Jim Fannin (D-Jonesboro) said that he and Senate Finance Committee Chairman Jack Donahue (R-Mandeville) agreed late Wednesday morning to remove the OGB item from the agendas of the joint meeting.

“We just got the contract (with BCBS) yesterday and we need to give people an opportunity to look at it,” said Fannin, who added that the contract was nearly 80 pages.

Fannin, who supports the privatization, admitted the vote count was close but insisted that wasn’t the reason for postponing action.

State Rep. Katrina Jackson, a member of the Appropriations Committee who opposes the contract, however, interpreted the cancellation differently.

“I believe that the cancellation of this meeting indicates the legislature’s willingness to exert independence as a separate and equal branch of government,” she said, adding that she was certain that the administration would continue to apply pressure on members of both committees to come up with the needed votes.

Fanning should have gotten with the governor’s office and gotten their stories together. The two versions don’t mesh.

The word out of the governor’s office was that it has the votes already but that certain key members were scheduled to be out of town Thursday so the meeting needed to be re-scheduled.

That claim can probably be taken with a grain of salt. This is the same administration that insisted it took no active part in the day to day operations of LSU but yet insisted on reviewing any public records relative to the LSU Health Services prior to their release to Capitol News Service.

A more likely scenario is that Gov. Piyush Jindal’s staff members can count.

They saw that the votes (a simple majority is needed to approve the privatization) were not there and like NASA, aborted the mission.

For now.

Members of both committees were being lobbied heavily by both sides late Wednesday in the final hours before the meeting was finally cancelled. It’s a certainty that the pressure on the committee members will not abate—especially from the governor’s office. This is a must-win for him.

The original number of OGB personnel expected to lose their jobs with the BCBS takeover was 177 but some have already retired or found other jobs. That number is now about 150.

An important twist to the story involves the proposed layoffs. The Division of Administration is scheduled to submit a layoff plan to the Civil Service Commission in next few days but no layoff plan may be considered by the commission without an approved contract with Blue Cross/Blue Shield (BCBS).

Without the concurrence of the two committees, however, there can be no approved contract and thus, no layoff plan.

The privatization plan (but not the layoff plan) was approved by the Civil Service Commission in August but State Rep. Katrina Jackson (D-Monroe) requested and got an attorney general’s opinion that said the administration must obtain the concurrence of the legislature to finalize the transfer.
BCBS already serves as the third party administrator (TPA) for OGB’s HMO program.

OGB has accrued a fund balance in excess of $500 million over the past six years since Tommy Teague took over as director of OGB. But he was fired on April 15, 2011 when he did not get on board the Jindal privatization plan quickly enough. His successor lasted only six weeks before he, too, was gone.

Jindal has claimed that a private TPA would be able to run the various health and life insurance plans of about 225,000 state employees, retirees and their dependents.

A Legislative Auditor’s report, however, said that privatization could lead to increased health insurance premiums because of a private insurer’s higher administrative and marketing costs, its requirement to pay taxes on income and its need to realize an operating profit. The state does not pay taxes nor is it required to turn a profit.

The Jindal administration has employed tactics bordering on the clandestine in efforts to shore up its position. At one point it even refused to release a report by New Orleans-based Chaffe & Associates with which it contracted to determine the “fair market value” of OGB’s business.

When a copy of the report was released, however, questions arose immediately because of conflicting dates given by the Division of Administration (DOA) as to its receipt date and by the fact that none of the pages of the report was date-stamped.

DOA routinely date stamps every page of documents it receives to indicate the date and time the documents were received.

This led to speculation that there may have been two Chaffe reports. Even so, the one that was leaked to the Baton Rouge Advocate said that a private insurer would be required to build in the extra costs of taxes and profits when setting premiums.

Much of the reason for the closer-than-expected vote may have to do with growing resentment on the part of legislators who have seen hospitals and/or prisons closed in their districts, actions they say were taken by the administration without the benefit of giving lawmakers a heads-up.

Jindal, in closing prisons and hospitals, has done so while leaving it up to area legislators to try and explain to constituents why they will be out of work or why health care will be either cut back or unavailable.

Only this week, notices went out to 41 employees at E.A. Conway Hospital in Monroe that they would no longer be employed after Nov. 30—just in time for the Christmas holidays. Twenty-five of those were nurses.

Similar cutbacks have taken place at health care facilities all over the state and in August, Jindal abruptly announced the closure of Southeast Louisiana Hospital in Mandeville, effective this month, throwing some 300 employees out of work.

Moreover, with the earlier closure of a mental health facility in New Orleans, the entire area of Orleans, Jefferson, Plaquemines, St. Bernard, Tangipahoa, Washington and St. Tammany will be without access to mental health treatment at a state facility.

“The Office of Group Benefits does not cost the state any money,” Jackson said. “It is a healthy plan that has always remained viable while offering …excellent health care benefits.

“Our research has revealed that more than $70 million of the existing OGB surplus (more than $500 million) would be used to effectuate this privatization,” she said.

“The governor’s office claims that the state will realize $20 million in savings. However, this claim came without any supporting documentation even after numerous requests for that documentation.

“OGB’s administrative costs are 2 percent while the industry standard for private insurers is 6 percent. It seems that, at some point, it (the privatization) would actually cost the state additional money,” Jackson said.

http://house.louisiana.gov/H_Cmtes/H_Cmte_AP.asp

http://senate.legis.louisiana.gov/Finance/Assignments.asp

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“I believe I’d have a coronary if they went against the governor on this.”

—A longtime political observor, commenting on the upcoming joint meeting of the House Appropriations and Senate Finance committees to consider Gov. Piyush Jindal’s proposed privatization of the Office of Group Benefits (OGB).

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Members of the House Appropriations Committee and the Senate Finance Committee were being lobbied heavily by both sides on Wednesday in the final hours leading up to Thursday’s joint committee meeting to consider the privatization of the Louisiana Office of Group Benefits (OGB).

State Rep. Katrina Jackson (D-Monroe) said on Wednesday that she was concentrating on members of the House Appropriations Committee “because the concurrence of both committees is required.”

She said by mid-morning there appeared to be four undecided votes on the House committee.

“We need two votes,” she said, to block the move by Gov. Piyush Jindal. “Neither side can say it has the votes,” she added.

For those who might be interested in getting in their two-cents worth, here are the links to the names, phone numbers and email addresses for the members of each of the committees:

http://house.louisiana.gov/H_Cmtes/H_Cmte_AP.asp

http://senate.legis.louisiana.gov/Finance/Assignments.asp

The privatization, which would have Blue Cross/Blue Shield of Louisiana (BCBS) take over the operations of the agency’s Preferred Provider Organization (PPO), was approved by the State Civil Service Commission in August but State Rep. Katrina Jackson (D-Monroe) requested and got an attorney general’s opinion that said the administration must obtain the concurrence of the legislature to finalize the transfer.

BCBS already serves as the third party administrator (TPA) for OGB’s HMO program.

OGB has accrued a fund balance in excess of $500 million over the past six years since Tommy Teague took over as director of OGB. But he was fired on April 15, 2011 when he did not get on board the Jindal privatization plan quickly enough. His successor lasted only six weeks before he, too, was gone.

Jindal has claimed that a private TPA would be able to run the various health and life insurance plans of about 225,000 state employees, retirees and their dependents.

A Legislative Auditor’s report, however, said that privatization could lead to increased health insurance premiums because of a private insurer’s higher administrative and marketing costs, its requirement to pay taxes on income and its need to realize an operating profit. The state does not pay taxes nor is it required to turn a profit.

The Jindal administration has employed tactics bordering on the clandestine in efforts to shore up its position. At one point it even refused to release a report by New Orleans-based Chaffe & Associates with which it contracted to determine the “fair market value” of OGB’s business.

When a copy of the report was released, however, questions arose immediately because of conflicting dates given by the Division of Administration (DOA) as to its receipt date and by the fact that none of the pages of the report was date-stamped.

DOA routinely date stamps every page of documents it receives to indicate the date and time the documents were received.

This led to speculation that there may have been two Chaffe reports. Even so, the one that was leaked to the Baton Rouge Advocate said that a private insurer would be required to build in the extra costs of taxes and profits when setting premiums.

Once considered a slam-dunk for approval, the vote now appears much closer on the eve of the meeting of the two committees.

Much of the reason for the change may have to do with growing resentment on the part of legislators who have seen hospitals and/or prisons closed in their districts, actions they say were taken by the administration without the benefit of giving lawmakers a heads-up.

Jindal, in closing prisons and hospitals, has done so while leaving it up to area legislators to try and explain to constituents why they will be out of work or why health care will be either cut back or unavailable.

Only this week, notices went out to 41 employees at E.A. Conway Hospital in Monroe that they would no longer be employed after Nov. 30—just in time for the Christmas holidays. Twenty-five of those were nurses.

Similar cutbacks have taken place at health care facilities all over the state and in August, Jindal abruptly announced the closure of Southeast Louisiana Hospital in Mandeville, effective this month, throwing some 300 employees out of work.

Moreover, with the earlier closure of a mental health facility in New Orleans, the entire area of Orleans, Jefferson, Plaquemines, St.

Bernard, Tangipahoa, Washington and St. Tammany will be without access to mental health treatment at a state facility.

The proposed privatization of OGB will put about 120 workers out of work.

“It’s going down to the wire,” Jackson said of the vote to turn the PPO over to BCBS. “It’s going to be close.”

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State Civil Service employees have gone without a 4 percent merit pay raise for three years now because of budgetary restrictions, brought on in large part by a Piyush Jindal administration that refuses to apply for federal grants for needed projects and by Jindal’s insistence on granting more and more tax breaks to corporate entities who take the money and, in at least one case, cease operations within a year or so.

No one is saying that grant money can be used to fund employee pay raises but when federal funds for broadband internet ($80.6 million), early childhood development ($60 million), and $5 billion a year in tax exemptions are taken out of the budgetary mix, the money must be made up from other sources.

Because of constitutionally mandated spending, there are only two areas where cuts may be made: higher education and health care. And of course, there is always the suspension of pay raises.

Accordingly, Curt Eysink, executive director of the Louisiana Workforce Commission (LWC)–once known by its archaic nom de plume, the Department of Labor–sent an email to all his employees on Sept. 26 which informed them thusly:

Dear Fellow LWC Employees,

As you are aware, the LWC has experienced significant reductions in funding over the last four years as the demand for our services increased. That has put a lot of added pressure on many of you, and you should know that your efforts are greatly appreciated. Unfortunately, the combination of funding reductions and increased services also puts a tremendous strain on our budget, and we continue to struggle to maintain staffing levels in certain areas.

Yesterday afternoon, I submitted a request to Civil Service for the Layoff Avoidance Measure of withholding performance adjustment pay increases (or merit increases) for the upcoming year. I sincerely regret that this is necessary for a third year in a row, but I made this request to minimize the impact of budget pressures on our levels of staffing and on the agency.

I appreciate your dedication and patience as we work through these tough financial times. If you have any questions, please feel free to contact me.

Well, wasn’t that special? Eysink, in an effort to avoid layoffs, was willing to allow his employees to bite the bullet on behalf of the greater good by denying them pay raises, even though he “sincerely” regretted the action.

But wait. While he was sacrificing 4 percent increases for virtually his entire agency, Eysink was apparently attempting a backdoor salary bump of some $20,000 per year (40.8 percent), from $47,570 to $67,000, for a single employee.

Jonie Smith, Emerging Workforce Manager (for programs involving community action agencies, veterans and disabled workers), was approved by the state Civil Service Commission for an increase from $47,570 to $67,000 despite restrictions that would have limited her increase to only $53,000.

This is the same Civil Service Commission that rubber stamped the privatization plan for the Office of Group Benefits that will cause about 120 workers in that agency to lose their jobs. (Is it just us, or does anyone else see the Civil Service Commission as becoming just another Jindal dancing monkey in much the same mode as the Ethics Commission and the Louisiana Legislature?)

Not that one member, at least, didn’t try to discourage the big raise.

Briefly, here’s a recap of what went down:

Smith apparently got a job offer from the private sector and Eysink felt she was just too valuable to lose. Civil Service rules allow a state agency to match a private sector offer and in this particular case a match would have boosted her salary by $5,430, or 11.4 percent—nearly three times the 4 percent merit raise for state employees—if such raises still existed, which, of course, they don’t.

Even at that, agency officials lobbied for $67,000, causing commission member Scott Hughes to balk. Hughes observed that a lot of good employees have already been lost to layoffs. Another 1500 or so are slated to lose their jobs (just in time for Christmas, no less) through massive cutbacks in services by the LSU healthcare system.

“I’m not going to cast a vote to set a precedent for one employee,” he said, adding that other agencies might attempt similar moves. “I believe it’s a barn door we are opening that will not get shut.”

Commission Vice Chairman John McLure pooh-poohed Hughes’s concerns. “Given the current economic situation and the downsizing we have approved, we won’t see much of this,” he said somewhat incredulously.

Apparently, McLure has not been paying close attention to the news lately (see Tim Barfield, whom Jindal appointed Revenue Secretary at twice the salary of his predecessor).

It should also be noted that while Eysink pays the obligatory lip service to his employees by telling them how much he values and appreciates their dedication and patience, at least one staff member is valued and appreciated considerably more than the rest. Either that or he’s simply lying about how much he appreciates his workers in the first place. Of course, lying is certainly not new to this administration.

Remember Jindal’s disingenuous State Employee Appreciation proclamations the past three years? Were they not so cynical and such classic examples of sick humor, they’d almost be laughable. Almost.

Hughes did have one ally in Civil Service assistant director Jean Jones.

While Ashley Gautreaux, LWC human resources director described Smith, who has worked for the agency since December of 2010, a “critical” employee, Jones said based on Civil Service records, Smith barely meets minimum job qualifications for the job she is in.

The commission predictably went along with the $19,430 per year pay raise with Hughes casting the only negative vote.

One LWC employee emailed LouisianaVoice expressing an attitude of being quite “p—sed” at the action.

That’s certainly easy to understand. Jindal has completely ignored this state since his re-election (with the exception of opportunities for camera face time during Hurricane Isaac). He is rarely even in the state anymore even as a dangerous sinkhole has caused evacuations in Assumption Parish. He is nowhere to be found even as the state’s economy is tanking, causing cutbacks in medical care, budget cuts to higher education which in turn precipitated tuition increases for already financially-strapped students—all while he pumps up salaries for his appointees (see Tim Barfield), fires doctors and college presidents and attorneys and continues to campaign for president—a goal, by the way, that he will never reach.

The question then is, with more than three years left for him to turn his nose up at the citizens who elected him, how much more of this boorish behavior is the state citizenry—and the legislature—willing to take off this arrogant Alfred E. Newman lookalike?

Perhaps Hammond attorney C.B. Forgotston said it best when he said it is time for us to move on because Bobby has. “It’s time for us to admit the truth: Bobby Jindal is finished with Louisiana,” he said.

“Bobby’s future is beyond the borders of Louisiana and he shows it every day. It’s time for the legislators to determine what type of state in which they want to live, not what Bobby leaves us.”

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