Saturday, 16 July 2011 12:53
Rainwater Announces Morgan Keegan To Evaluate Louisiana OGB Privatization
Written by 

BATON ROUGE – On Friday, Commissioner of Administration Paul Rainwater announced that Morgan Keegan has been selected through a competitive RFP process to provide financial advisory services to evaluate the Office of Group Benefits and recommend a course of action for administering the office in the best interest of both plan members and the taxpayers.


The possible privatization of OGB has been a very controversial proposal and has been opposed by various organizations. Here is the press release from Rainwater’s office:

Once a contract is agreed upon, the financial advisor will, over the coming months, conduct a comprehensive and in-depth analysis of OGB and the health care market, and provide recommendations to the administration as to the proper administrative structure of OGB. If the financial advisor recommends structural changes to OGB, such changes are not anticipated to be implemented until the start of the plan year beginning January 1, 2013.

Any changes implemented would have to comply with the following parameters:

•          Plan members will continue to receive quality service and coverage;

•          Benefits for all plan members, including retirees, will not change, and current eligibility rules for coverage will not change for any plan members as a result of possible further privatization of OGB;

•          Premiums rates, likewise, would be unaffected by such a transition and increases, when they occur, will continue to be reflective of medical market rates, as they are now; and

•          OGB’s administrative oversight will continue, securing the continued success of all the plans.

“This is an important first step in what will be a lengthy, careful, and thorough evaluation process to arrive at the best possible policy for plan members and taxpayers alike,” Commissioner Rainwater said.

OGB provides health coverage for 225,000 government employees, retirees, and dependents. OGB has long used private companies successfully to deliver various health plans, including the most popular plan, the HMO, which covers 155,000 members, and is currently administered by BlueCross BlueShield. The PPO plan, which covers 61,500 people (less than half of those covered by the HMO and 27 percent of OGB’s total), is currently self-administered. Because of this, Louisiana is one of only two states in the country (the other being Utah) whose government basically functions as a health insurance business.

The financial advisor will assist the administration to explore aligning Louisiana with other states by expanding private company delivery to include the PPO as well as the HMO, while continuing to provide high-quality coverage and service to plan members and doing what is best for the taxpayers, who contribute 75 percent toward premiums and the cost of coverage.


In addition, the OGB fund balance cannot and will not be diverted for budgetary purposes. Strong restrictions remain in place governing OGB’s fund balance, and it will continue to be utilized just as it is now – solely for the purpose of providing health coverage for plan members.

The financial advisor’s lengthy evaluation would include a competitive Solicitation for Offers from health providers. A detailed proposal would then be presented to the legislature’s appropriation and finance committees, whose members have jurisdiction over OGB, to receive approval for any contract awarded.

Bayoubuzz Newsletter - Sign Up Below

For Email Newsletters you can trust

Talk To Us: 

What should U.S. Congress do to prevent default?
(Use your Facebook profile. Login and speak your mind) 


Also Click here and Join:

Login to post comments
  • Cat Fights on the Hot Cement Confederate New Orleans statues
  • Ex-Saints, Bears, Bills, NFL Exec, Jim W. Miller discusses NFL Draft tomorrow
  • Trump's new plan; Curtains on tax returns release; 40% say Trump-Russia; Probing Obama admin
  • Watch Louisiana Governor Edwards talk about CAT Tax failure

catRarely, have I seen few issues that have generated as much raw heat, tension, and passion than the Confederate monuments controversy. 

Just as existed during the real civil war, where brothers battled brothers, social media is the battleground, particularly Facebook, pitting friend against friend.

On one side of the tense divide, there are those who are protecting the New Orleans civil war era monuments.  Burnt in effigy, forever, is the symbol of Mayor Mitch Landrieu for up-ending what the monument protectors consider to be the loving civil society of New Orleans.

Lately, events have turned somewhat militaristic.

Some protectors of the Confederate monuments have been staying vigilant, in person and online, even surveilling during the wee hours of the morning, waiting for the next Mayor Landrieu attack. On Sunday morning, with protections of snipers, masked workers and a dumbstruck audience, the worst of all of the monuments was cut and carried., the Liberty Monument. 

Read More

miller nfl live2 5It’s D-Day or Draft Day tomorrow in the NFL.

More specifically, Thursday represents the first day of the NFL draft 2017.

Read More


trump curtainsThe major President Trump news of the day focuses upon taxes, not only the tax cuts he is proposing but his own taxes, which he obviously, refuses to unveil.


Read More

edwards play money 1

At a press conference today, Louisiana Governor John Bel Edwards said the CAT Tax did not pass the House Ways and Means Committee.  The Governor, in addressing the media said that "the fate of that bill was decided long before we unveiled it".

Read More


Sen. Appel talks budget, economy


Dead Pelican

Optimized-DeadPelican2 1 1