State attorney general opinion a setback for Gov. Jindal

By Mason Harrison
Contributing Writer

Louisiana Gov. Bobby Jindal suffered a setback Sept. 14 in his continued push to privatize more state functions as part of an overall Republican-led plan to shrink the size of state government. In a legal opinion from the state’s attorney general’s office, Jindal’s proposal to outsource the function of the Office of Group Benefits, which manages health care plans for state workers, must be given the green light by state lawmakers who, until now, have been kept out of the process.

The opinion was sought by state Rep. Katrina Jackson after the state’s Civil Service Commission approved a plan to privatize the office in August. Under the proposal, BlueCross BlueShield administrators in Louisiana would assume the role of the group benefits office, which provides health, accident and life insurance benefits to thousands of current and retired state employees and their dependents.

But the opinion from the state’s top law enforcement office has put the brakes on the governor’s plan. “Clearly,” according to the opinion, “the Legislature has expressed its desire that contracts governing the provision of basic health care services, as well as certain other related contracts, be subject to review and final approval by the Legislature.

In summary, it is the opinion of this office that the proposed contract between [the Office of Group Benefits] and [BlueCross BlueShield] is a contract negotiated pursuant to the provisions of [state laws requiring legislative approval]. As such, the contract is subject to review and final approval by the appropriate standing committee of the Legislature having jurisdiction over review of agency rules by the Office of Group Benefits as designated by [state laws requiring legislative approval] or the subcommittees on oversight of such standing committees, and the Office of Contractual Review of the Division of Administration.”

The plan must now be approved by lawmakers with fiscal conservatives eager to reduce the state’s government footprint and liberal legislators resisting Jindal’s plan to roll back Louisiana’s statutory functions. “The Office of Group Benefits,” Jackson said in a statement lauding the attorney general’s opinion, “does not cost the state any money. It is a healthy plan that has always remained viable, while currently offering health insurance to more than a quarter of a million Louisiana citizens at a reasonable cost.” Jackson also said the plan would eliminate more than 100 jobs for current state employees.

But with Republicans in support of Jindal’s privatization plans controlling both chambers of the state Legislature, efforts to stave off the outsourcing of the office may not be successful. Jackson, however, remained optimistic in her statement and made clear her “prayer that all of my fellow members will join me and others in not approving this [proposal].”

This article was originally published in the September 17, 2012 print edition of The Louisiana Weekly newspaper