Katrina Jackson, OGB, charges, Blue Cross, administrative costs - KNOE 8 News; KNOE-TV; KNOE.com |

State Representative Katrina Jackson levels charges against OGB

Posted: Updated: Nov 8, 2012 12:45 PM
16th District State Rep. Katrina Jackson 16th District State Rep. Katrina Jackson

MONROE, La., (KNOE 8 News) - According to District 16 State Representative, Katrina Jackson, current OGB Budgetary Request Documents indicate that the Blue Cross Blue Shield Contract is going to cost Louisiana $154,801,412.00 in additional administrative costs.

Rep. Jackson says, "A number of citizens and members of the Legislature have committed to ensure that we operate with sound fiscal policy. After a review of documents submitted by the Office of Group Benefits (OGB) to the Division of Administration for its 2013-2014 Budget Request, the request reflects a significant increase in the administrative costs.

Representative Jackson charges that the request includes an overall increase for approximately $264,696,853.00 for OGB. Further, she argues that this figure has not been explained and therefore, the purpose of the above increase can not be determined nor calculated.

Increases related to the PPO and BLUE CROSS BLUE SHIELD (BCBS), Rep. Jackson says, reflects a decrease by $24,006,450.00 in OGB's administrative costs and other expenses. But, she adds, another attachment to the request reflects an increase of $739,978,762.00 in administrative fee payments to BCBS.

Yet another attachment, according to Rep. Jackson, reflects a decrease by $557,670,900.00 in the PPO claims payments and $3,500,000.00 to United Behavioral Health for disease management.

She summarizes that after deducting all of the "savings" represented by the decrease in dollar amounts for OGB administrative costs and other expenses, OGB PPO claims payments and United Behavioral Health payments from the amount requested to be paid to Blue Cross Blue Shield, there remains a net amount of $154,801,412.00 being paid to BCBS without explanation.

And Rep. Jackson concludes, "It is not sound fiscal policy to pay more for services while laying off 177 individuals. We are, in fact, actually requiring the state to pay more!!!"

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