The Legislature is moving on two fronts to increase oversight and operations of the state Office of Group Benefits. OGB handles health care insurance for 230,000 state employees, teachers, retirees and their dependents.

Plan members have been unhappy with the management of the office by the Gov. Bobby Jindal’s administration and their grievances led to a suit being filed in state district court.

The major complaints center around a $500 million reserve fund that has been rapidly depleted, the changing of health care plans with little public input and big premium increases.

Sen. Sharon Weston Broome, D-Baton Rouge, is author of Senate Bill 260 that changes the makeup of the Group Benefits Policy and Planning Board. It would be reduced from 15 to 11 members, and most of them would be appointed by the Legislature.

The legislation also creates a Group Benefits Estimating Conference of six members that would develop planning, premium rates and budget information.

Any new plan of benefits or the annual plan of benefits submitted by the commissioner of administration would be subject to review and approval by the appropriate standing committees or subcommittees of the Legislature.

Plans submitted by the commissioner would have to include an estimate of the costs and an estimated rate structure for a three-year period.

S.B. 260 was approved 38-0 in the Senate and is awaiting a hearing in the House Appropriations Committee.

Rep. Chris Broadwater, R-Hammond, is author of House Bill 370. It establishes the Group Benefits Actuarial Committee composed of the commissioner of insurance, the state treasurer and the legislative auditor or their designees.

Broadwater’s measure clarifies that the authority of the commissioner of administration to establish benefit plans must be done under provisions of the Administrative Procedures Act, which will guarantee public input on what is taking place.

H.B. 370 was approved 95-0 in the House and is awaiting a hearing before the Senate Finance Committee.

The Public Affairs Research Council of Louisiana published a study of OGB operations that called for an auditing committee. Robert Travis Scott, president of PAR, said the Broadwater bill will ensure more open government.

Frank Jobert, legislative director of the Retired State Employees Association, said, “This gives us another level of oversight, someone looking at it from an independent perspective that gives us a comfort level.”

Any actions taken by OGB have a widespread effect. Those who are covered have seen plans changed and premium increases over which they had little control. Legislators have also been on the outside looking in.

State government and local school boards have a major stake in the outcome since they pay 75 percent of the premiums.

We hope the committees holding both OGB reform bills will give them a quick hearing since the legislative session has to end by June 11.

Louisiana Legislature

MSgt Toby M. Valadie