Friday, December 4, 2009

Jindal eyes privatizing state workers’ health plan

The Jindal administration is considering the privatization of more of the state’s employee health-insurance program operations.

Commissioner of Administration Angèle Davis confirmed her agency is looking at drafting a “request for proposal” for a private third-party administrator of the preferred provider option run by the state Office of Group Benefits.

Some 69,460 employees, retirees and dependents are covered by the PPO plan.

“We are working through a pretty extensive review,” Davis said. “We are looking to see if it will improve services for plan participants and lower costs.

Group Benefits administrator Tommy Teague said his agency will compete for the work if the administration decides to seek proposals from private business on plan administration.

The Office of Group Benefits offers several options for employees to choose health insurance coverage. All the plans are self-funded with Group Benefits at-risk for all medical payments.

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