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

LouisianaVoice is going to conduct an experiment, but it will require the cooperation of as many of our readers as possible to make it work.

We are asking each or our readers (who are not state employees: that might constitute immediate Teaguing) to email their state legislators—representatives and senators—to ask them:

As critical as the LSU hospitals are to our LSU and Tulane Medical School Students, our indigent population, our medical research efforts, and much more, why is this being allowed to take place without so much as a peep from you? Are you unconcerned? Do you favor privatizing all primary services and assets of the state such as schools, prisons, hospitals, retirement benefits, medical insurance administration, surface water rights, roads and bridges, financial management, and so much more? What’s next, the sale-leaseback of the Pontchartrain Causeway?

Are you aware that the interim President of the LSU Medical School has been granted the power to sell the entire LSU Medical School program and all of its facilities? Are you? Do you think this is the power that should be vested in an appointed position made by the governor? Do you? What then is your role in state government? Apparently nothing more than to meet annually for 30 days and pass resolutions congratulating couples for being married 50 years, or a football player for being named as an honorable mention all-state, or something equally unrelated to the general welfare of the state that has no business cluttering up the legislative agenda. You might as well just leave your rubber name stamp on your legislative desk and stay home and make luncheon talks to the “Save the Ring-tailed Raccoon Society.”

I want to know where you stand on these issues and what you intend to do. Are you going to continue to allow your authority to be usurped by Jindal and his minions? Worse, are you going to Baton Rouge with hat in hand asking what else you can do to help Jindal legitimately rape the citizens of the state?

Moreover:

When are you, as my (representative/senator) going to stand up to Gov. Jindal and his runaway efforts to:

• Disembowel higher education;

• Destroy public education to the financial benefit of private contractors/campaign supporters;

• Dismantle the state’s flagship university by appointing political hacks to the LSU Board of Supervisors, firing capable administrators and closing/privatizing state hospitals;

• Allow voucher and online courses to take the place of public education without even a smidgen of accountability or standards to which public education is held;

• Continually allow our governor to usurp the powers and responsibilities that rightfully belong to the legislative branch, including the choosing of House Speaker and Senate President?

I want and expect a public and publicized answer by you on the entirety of this subject. You’ve been silent long enough.

Click here for a list of House members: http://house.louisiana.gov/H_Reps/H_Reps_ByName.asp

Click here for a list of Senate members: http://senate.legis.louisiana.gov/Senators/

Scroll down the list until you find your representative/senator and click on the name. The legislator’s email address will on the page that will appear. For representatives, you need only click on the email address but you will have to type the senators’ email addresses.

(Do NOT send this complete post; cut and paste only the part that is in italics. It’s not that we don’t want legislators to know the source of this idea (because we really don’t care if they know) but it’s best if the questions come from you, the reader. So, again, do not send the introductory paragraphs in which we solicit readers to send the emails. Send ONLY the text that is in italics. If you don’t know how to cut and paste, simply re-type the questions and send them as originals from you.)

When you have done this, be sure to keep accurate records as to which legislators, if any, respond and record each response verbatim. Also, keep records of those who do not respond. Set a deadline of Sept. 21 and beginning on Sept. 22, forward all responses to LouisianaVoice at louisianavoice@cox.net

Accordingly, we will publicize each response and we also will out those who ignore your emails.

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Let the dismantling begin.

The LSU Board of Supervisors, packed with 11 of its 15 members who contributed an aggregate of more than $225,900 to Gov. Piyush Jindal’s political campaigns, voted Friday to take the first official step toward what will likely become the complete destruction of the LSU Health System.

The board, which since April has fired, demoted or reassigned LSU President John Lombardi, health system head Dr. Fred Cerise, Interim LSU Public Hospital CEO Roxanne Townsend and LSU System General Counsel Ray Lamonica, voted on Friday to authorize LSU hospitals in Shreveport, Monroe and Alexandria to develop requests for proposals (RFPs) for public-private partnerships for the three hospitals.

Jindal has already slashed $14 million in appropriations for Lallie Kemp Regional Medical Center in Tangipahoa Parish. That represents nearly 35 percent of the facility’s total budget and will mean the loss of surgery, cardiology and ICU services and dramatic cuts to oncology, gynecology and disease management as well as up to 150 staff members who stand to lose their jobs.

Additionally, the LSU Hospital in Bogalusa had its budget cut by $3 million, forcing the facility to close several clinics and to absorb pediatrics into primary care.

In Mandeville, Southeast Louisiana Hospital is slated for closure beginning next month, leaving the Florida parishes, Orleans, Jefferson, St. Bernard and Plaquemines parishes with no state mental health treatment centers.

W.O. Moss Regional Medical Center in Lake Charles also was designated for massive budget cuts and University Medical Center (UMC) in Lafayette was earmarked for $4.2 million in cuts but Jindal said the LSU plan would “protect critical services.

In an apparent effort to head off employee protests, UMC administrator Larry Dorsey notified employees not to attend a public rally—on or off the clock—protesting the cutbacks subject to disciplinary measures. That email was in stark violation of state civil service rules which specifically allow employees to attend such rallies as long as it is on their own time.

The Shreveport Times Friday morning published a story saying that LSU System supervisors would vote later in the day on beginning the process to develop RFPs on public-private hospital partnerships for hospitals in Shreveport, Monroe and Alexandria.

LSU Health spokesperson Sally Croom said the resolution, which was not added to the board’s agenda until Thursday, apparently after Lamonica was forced to resign as general counsel, and after the reassignment of Townsend, would give officials authority to develop an RFP.

Late Friday, as has become the custom of the administration, the announcement was formally made. Robert Barish, chancellor of LSU Health Shreveport, notified “faculty, staff and friends” by memorandum.

“As promised, I wanted to update you on the most recent activity regarding our continuing efforts to ensure a successful future for LSU Health Shreveport in the wake of the federal cuts to Louisiana’s Medicaid budget,” he said. “As you might recall, we were asked to explore several approaches to address the continuing budget challenges or our hospital system.

“Today, the LSU Board of Supervisors authorized us to explore public-private partnerships for our three hospitals. It is important to note that this is being done to see how collaboration with other hospitals might look and whether this may be a workable option.

“We will follow the Board instructions to explore this option, which is among several we are looking at during this fact-finding process. We have been looking at other hospitals which have faced similar situations successfully.

“We are committed to a thorough fact-finding process and exploring possibilities that would ensure continuation of our important missions of education, patient care and research.

“I will keep you updated as more information becomes available.”

It was not immediately known if similar messages were sent to employees of the facilities in Monroe and Alexandria.

The resolution passed by the board said:

BE IT RESOLVED by the Board of Supervisors of Louisiana State University that LSU Health Sciences Center Shreveport and Health Care Services Division are hereby authorized to develop and seek a Request for Proposal for the purpose of exploring public private partnerships for the LSUHSC-S affiliated hospitals, namely the LSU Medical Center in Shreveport, the E.A. Conway Medical Center in Monroe and the Huey P. Long Medical Center in Pineville/Alexandria and each of the hospitals in Health Care Services Division; and

BE IT FURTHER RESOLVED that this is necessary for identifying potential partners and long-term strategies which may help ensure the organization’s clinical services and financial stability in light of budgetary challenges caused by the recent decrease in federal Medicaid funding; and

BE IT FURTHER RESOLVED that the authority to seek a Request for Proposal does not mandate the Request for Proposal be released, nor does it mandate a proposal be accepted should one be released. The President shall have the discretion to authorize the release of the Request for Proposal and to accept the proposal that he deems in the best interest of the university.”

So, there you have it. A figurehead president brought out of retirement to replace a president who had a bad habit of being candid and outspoken is given the final authority to release the RFP and to accept the proposal “that he deems in the best interest of the university.”

What are the odds that this interim president and his hand-picked board will take any action, up and including taking a bathroom break without the approval of Piyush Jindal?

We already have more than sufficient evidence that Jindal is rapidly moving toward successfully destroying public health care in Louisiana. The closure of Charity Hospital in New Orleans following Hurricane Katrina, though nearly three years before he came to power, lay the groundwork for his later actions.

The federal government’s decision to slash Louisiana’s Medicaid appropriation by more than $572 million—along with state cuts of $287 million, bringing the total loss of funding to $859 million—simply gave him a convenient opportunity to accelerate a program he already had in place.

One need only look at what Jindal has done to higher education and public education to see a dangerous trend of cutbacks in crucial public services. His obsession with granting tax exemptions totaling $5 billion a year for corporate donors, transferring funds from parish school boards to private, for-profit schools, and forcing state colleges and universities to increase tuition to cover budgetary cuts has put the state on a dangerous collision course with fiscal reality that will remain long after Jindal has moved on to a cabinet position or in pursuit of higher office.

Jindal won’t be around to answer for his policies…but 144 legislators will be.

And so will Louisiana voters.

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Reports out of the State Capitol on Tuesday has yet another state employee about to become a victim of the ongoing Piyush Purge.

LouisianaVoice has learned of plans by the administration to fire LSU System Office General Counsel Raymond Lamonica.

If true, Lamonica would be the third LSU official to be teagued by Jindal in less than six months. System President John Lombardi was fired in April by the LSU Board of Supervisors acting on directions from the governor and last month, Dr. Fred Cerise, head of the LSU health care system similarly dismissed.

Reached at home Tuesday, Lamonica acknowledged that he had heard the reports but had no additional comment. “Not yet, anyway,” he added.

Lamonica was appointed as United States attorney for the middle district of Louisiana in 1986 by President Ronald Reagan. President Bill Clinton appointed L.J. Hymel to replace him in 1994. Prior to that, Lamonica worked as executive counsel to Gov. Dave Treen.

If the reports are accurate, Lamonica would be only the latest in a growing line of rank and file state employees, agency directors and cabinet secretaries who Jindal has either fired outright or, in the case of two legislators, demoted from committee assignments.

Besides members of board and commissions who are routinely replaced by governors with political allies and campaign contributors, Jindal has replaced, in order:

• March of 2008—Louisiana Highway Safety Commission Executive Director Jim Champagne, who opposed Jindal’s campaign promise to repeal the motorcycle helmet law;

• September of 2008—Department of Social Services Secretary Ann Williamson, after criticism of shelter conditions following Hurricane Gustav and problems with a post-storm food stamp program;

• June of 2009—Board of Elementary and Secondary Education member Tammie McDaniel, after she disagreed with some of the administration’s public education policies;

• October 2009—Melody Teague, a social services grant reviewer, after testifying in opposition to Jindal’s plan to streamline government;

• February 5, 2010—Department of Transportation and Development Secretary William Ankner, after a company that contributed $11,000 to Jindal’s campaign was awarded a $60 million highway contract despite not having the low bid;

• August 13, 2010—State Alcohol and Tobacco Control Secretary Murphy Painter, after being accused of sexual harassment and fired after rejecting a permit application to SMG, the New Orleans Superdome management company, that would allow Budweiser to erect a large tent and signage in Champions Square. Budweiser had offered $300,000 to the Louisiana Stadium and Exposition District to sponsor the tent for tailgating parties at Saints home games;

• April of 2011—Office of Group Benefits (OGB) Director Tommy Teague (husband of Melody Teague), after failing to display sufficient enthusiasm over Jindal’s plans to privatize his agency;

• June of 2011—Tommy Teague’s successor Scott Kipper, after apparently irritating his boss, Commissioner of Administration Paul Rainwater over the number of OGB employees he would recommend to be laid off;

• March of 2012—Office of Elderly Affairs Executive Director Mary Manuel, after testifying she was never informed of Jindal’s plans to move her agency from the governor’s office to the Department of Health and Hospitals;

• March of 2012—State Rep. Harold Richie (D-Bogalusa), demoted from his vice-chairmanship of the House Committee on Insurance after voting against a tax rebate for those who donate money for scholarships (vouchers) to private and parochial schools;

• April of 2012—LSU System President John Lombardi, after publicly criticizing massive budget cuts imposed on higher education by Jindal;

• June of 2012—Secretary of Revenue Cynthia Bridges after it became obvious that an alternative fuel tax credit law signed by Jindal which granted tax credits for the purchase of certain fuel-efficient automobiles would cost the state upwards of $100 million;

• June of 2012—State Rep. Jim Morris (R-Oil City), was removed from his vice-chairmanship of the House Natural Resources and Environment Committee after resisting efforts by Jindal to use one-time money to fund recurring expenses in the state’s General Budget;

• August of 2012—Dr. Fred Cerise, head of the LSU health care system, after criticizing Jindal budget cuts which gutted the LSU medical system of hundreds of millions of dollars.

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The procedure for laying off up to 121 employees of the Office of Group Benefits (OGB) has been initiated by the Jindal administration in the aftermath of the privatization of the OGB Preferred Provider Organization (PPO).

A memorandum dated Aug. 23 has been circulated to OGB employees by Steven Procopio of the Office of Human Resources in the Division of Administration setting the effective date of the staff reductions as Jan. 2, 2013.

The layoffs must be approved by the State Civil Service Board but the board on Aug. 1 approved the awarding of the contract for the PPO to Blue Cross/Blue Shield (BCBS) of Louisiana, so the consideration of the layoff proposal should be little more than a formality by the board which has demonstrated a propensity to roll over and play dead for the administration.

BCBS already is the TPA for the state’s HMO.

Positions affected by the termination notice are in Internal Audit, Administration, Quality Assurance, Fiscal, Flexible Benefits/Imaging Services, Legal and HIPAA (Health Insurance Portability and Accountability Act) Compliance, Customer Service, Information Technology, Claims and Provider Services.

Employees of these offices are domiciled in the parishes of East Baton Rouge, Jefferson, Lafayette, Ouachita, Caddo, Calcasieu and Rapides.

The BCBS assumption of the third party administrator (TPA) duties for the PPO is scheduled to take effect with the beginning of the new calendar year in January.

Gov. Piyush Jindal and Commissioner of Administration Paul Rainwater have consistently insisted that the state should not be in the insurance business and that a private entity can administer insurance claims on behalf of state employees more cheaply and more efficiently than the state—despite OGB’s having built reserves of $500 million over the past half-dozen years.

Several independent studies have intimated that premiums are likely to increase after the first year because a private TPA will face the double whammy of the need to show a profit and the requirement to pay taxes on profits—factors the state never had to consider when it administered the claims.

Jindal, who made a point of voicing his concern and respect for state employees when he ran for governor has shown little, if any, of either sentiment since becoming governor. In fact, he has consistently attacked state employees at every turn including the orchestration of failed attempts to dismantle Civil Service and to gut the state employee retirement system—both to the detriment of state workers.

Jindal, after failing to sell state prison facilities, simply closed two of them and then announced the closure of Southeast Louisiana Hospital in Mandeville without notifying the legislative delegation in that part of the state—a delegation which until then had been fiercely loyal to him.

The closure of the Mandeville facility will adversely affect more than 500 employees and up to 170 inpatient recipients of mental health care. Moreover, with its closure, there will be no state facility offering mental health care for an entire section of the state that includes the parishes of Tangipahoa, St. Tammany, Washington, Orleans, St. Bernard, Plaquemines and Jefferson.

Other state medical facilities and LSU teaching hospitals also are threatened by the lost of some $800 million in Medicaid funding and higher education also has taken a major hit with near catastrophic budgetary cutbacks.

Yet, as all this economic train wreck careens out of control down the tracks, Jindal continues to travel the country—initially auditioning for the vice presidential nomination on Mitt Romney’s ticket and when that failed, soldiering on as the dutiful lap dog in support of the Republic Party that has relegated him to a minor speaking role at next week’s GOP convention.

Hardly an appropriate token of appreciation, considering all he has done on behalf of his second choice for the nomination while ignoring a state falling apart back home.

The leadership vacuum experienced by Louisiana during this administration is not what one would expect to read of in Jindal’s book Leadership and Crisis, now is it?

The real of the crisis, after all, is his abysmal lack of leadership.

If, as New Orleans’ Gambit so succinctly pointed out, he truly has the job he loves, he should return to Louisiana to address the myriad of problems facing the state and in so doing, put his money (read: efforts) where only his mouth has been.

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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.

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