knoe 8 news, knoe.com, office of group benefits, Louisiana - KNOE 8 News; KNOE-TV; KNOE.com |

Gov. Jindal pushing to privatize state health insurance

Posted: Updated:

MONROE, La. (KNOE 8 News)- 62 thousand state employees could soon see a change in their health insurance plans. Governor Bobby Jindal wants to privatize the state office that oversees insurance benefits for state workers. But some law makers are wary of the move. "If we are going to look at those options we have to make sure they are the absolute best options" said democratic state representative Marcus Hunter.

Right now the Office of Group Benefits (OGB) offers health and life insurance to a quarter million employees, retirees, and their dependents. The governor's office says contracting out plans to Blue cross and Blue Shield will save the state 20 million dollars and state workers won't see a change in benefits or premiums. "Which is a direct benefit to members and the cost that they pay for their plans. It's also a decrease in cost to tax payers" said Commissioner of Administration Kristy Nichols.

But Representative Katrina Jackson says the numbers don't add up. According to her, the contract will cost 154 million dollars more in administrative costs and lay off 177 OGB employees. "When we looked at the plan to privatize the PPO, of course we looked at the numbers and realized that there was no way possible that a private insurance company could offer the same type of service while keeping it under the dollar value that OGB does" said Jackson.

"For the administration and for certain groups to think this is a good idea, in these tough financial economic times, is beyond me" added Hunter.

The contract was initially signed with out legislative consent. But the state attorneys general office says the governor must have lawmaker approval first. Lawmakers will meet Friday morning to vote on the plan.

Louisiana is one of two states that hasn't contracted out health insurance services.

 

  • Most Popular StoriesMost Popular StoriesMore>>

  • Pipe beating leads to arrest

    Pipe beating leads to arrest

    Thursday, August 28 2014 5:02 PM EDT2014-08-28 21:02:44 GMT
    UNION PARISH, La. (KNOE 8 News UPSO) - A Junction City man has been booked into the Union Parish Detention Center accused of striking another man in the head with a pipe.
    UNION PARISH, La. (KNOE 8 News UPSO) - A Junction City man has been booked into the Union Parish Detention Center accused of striking another man in the head with a pipe.
  • KNOE tailgates with a ULM Grove legend

    KNOE tailgates with a ULM Grove legend

    Thursday, August 28 2014 5:17 PM EDT2014-08-28 21:17:41 GMT
    MONROE, La. (KNOE 8 News)- Buddy Embanato is a familiar face in the Grove during football season.
    MONROE, La. (KNOE 8 News)- Buddy Embanato is a familiar face in the Grove during football season.
  • Local Red Cross Chapter slashed in cutbacks

    Local Red Cross Chapter slashed in cutbacks

    Thursday, August 28 2014 2:22 PM EDT2014-08-28 18:22:44 GMT
    MONROE, La. (KNOE 8 News) - Big changes at the American Red Cross on a national level are having an effect on local staffing. As part of restructuring, the Northeast Louisiana Chapter based in Monroe is loosing its executive director and three other full time employees.
    MONROE, La. (KNOE 8 News) - Big changes at the American Red Cross on a national level are having an effect on local staffing. As part of restructuring, the Northeast Louisiana Chapter based in Monroe is loosing its executive director and three other full time employees.
  • Teacher accused of having sex with 2 students

    Teacher accused of having sex with 2 students

    Thursday, August 28 2014 9:53 AM EDT2014-08-28 13:53:04 GMT
    BATON ROUGE, La. (AP) - Riverdale Christian Academy administrators have fired English teacher Ashley Dowden following her confession to deputies that she had sex with a 16-year-old student.
    BATON ROUGE, La. (AP) - Riverdale Christian Academy administrators have fired English teacher Ashley Dowden following her confession to deputies that she had sex with a 16-year-old student.
  • Stabbing on Church Street

    Stabbing on Church Street

    Friday, August 29 2014 9:14 AM EDT2014-08-29 13:14:01 GMT
    MONROE, La. (KNOE 8 NEWS) - Multiple stab wounds sends one to the hospital.
    MONROE, La. (KNOE 8 NEWS) - Multiple stab wounds sends one to the hospital.
  • Gun company cuts ties with reality TV star

    Gun company cuts ties with reality TV star

    Thursday, August 28 2014 1:59 PM EDT2014-08-28 17:59:12 GMT
    BATON ROUGE, La. (AP) - A firearms company affiliated with reality TV star Will Hayden is distancing itself from him after his arrest on rape charges. In a statement on its website, Red Jacket Firearms LLC says it has legally separated from Hayden.
    BATON ROUGE, La. (AP) - A firearms company affiliated with reality TV star Will Hayden is distancing itself from him after his arrest on rape charges. In a statement on its website, Red Jacket Firearms LLC says it has legally separated from Hayden.
  • Shooting on Lowery Street

    Shooting on Lowery Street

    Friday, August 29 2014 9:08 AM EDT2014-08-29 13:08:38 GMT
    MONROE, La. (KNOE 8 NEWS) - Shooting on Lowery Street sends one person to the hospital.
    MONROE, La. (KNOE 8 NEWS) - Shooting on Lowery Street sends one person to the hospital.
  • Fixing the roads... One pothole at a time

    Fixing the roads... One pothole at a time

    Thursday, August 28 2014 9:21 PM EDT2014-08-29 01:21:38 GMT
    WINNSBORO, La (KNOE 8 NEWS) -- Eighteen roads in Franklin Parish are about to get a face lift, thanks to the Ad Valorem tax and extra state funding.
    WINNSBORO, La (KNOE 8 NEWS) -- Eighteen roads in Franklin Parish are about to get a face lift, thanks to the Ad Valorem tax and extra state funding.
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KNOE. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.