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Regular Session, 2011
SENATE CONCURRENT RESOLUTI ON NO. 62
BY SENATORS GAUTREAUX, BROOME, CHAI SSON, CHEEK, DORSEY, JACKSON,
LAFLEUR, LONG, MARIONNEAUX, MCPHERSON, MILLS,
MORRISH, MOUNT, MURRAY, NEVERS, PERRY, PETERSON,
THOMPSON AND WILLARD-LEWIS
LEGIS POWERS/FUNCTIONS. Express intent of the legislature to provide life and health
benefits to public employees.
A CONCURRENT RESOLUTI ON1
To express the intent of the legislature to provide comprehensive, affordable life and health2
benefits for current and retired public employees and their family members through3
the operation of the Office of Group Benefits.4
WHEREAS, the role of the Office of Group Benefits (OGB) in providing life and5
health benefits to public employees, particularly coverage under its self-administered PPO6
plan, has become an issue of intense interest for the people of the state, particularly current7
public employees and retirees receiving benefits through OGB; and8
WHEREAS, the Division of Administration, through OGB, issued a request for9
proposals (RFP) on May 6, 2011, seeking to retain the services of a financial advisor to10
assess the market value of the book of business and services provided by OGB and negotiate11
on its behalf alternative methods by which OGB may perform its statutory responsibilities12
to provide affordable life and health benefits to public employees in Louisiana; and13
WHEREAS, proposals under the RFP are due to OGB on June 6, 2011, with a14
tentative timeline for the start of any contemplated alternative methods as January 1, 2012;15
and16
WHEREAS, while the focus of public discussion has, at times centered on OGB's17
PPO, which is self-administered by OGB, the RFP seeks information regarding the sale of18 SCR NO. 62
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the entire book of business and services under all plans under OGB: the HMO-Blue Cross1
plan; the PPO-OGB plan; the CDHP/HSA-UHC plan; the MHHP-VHP plan; the Medicare2
Adv plan; and the LSU-CIGNA plan; and3
WHEREAS, administration statements before the Senate Committee on Retirement4
range from "a sale and privatization of the Office of Group Benefits will have no negative5
impact for those covered . . . " to "we're not selling the Office of Group Benefits" indicate6
a lack of transparency and forthrightness from the administration; and7
WHEREAS, over 30 years OGB has developed a network which includes every8
hospital in the state except one, obtained discounts with medical providers across the state9
which are returned to OGB in the form of savings, and as a result of becoming self-insured10
with efficient and competent management OGB was able to correct a $36 million negative11
fund balance in 2006 to a $520 million positive fund balance; and12
WHEREAS, the lack of transparency, access to information, and inconsistency in13
testimony has failed to convince the members of the legislature as to the wisdom of14
privatizing or selling OGB when it has a $520 million surplus due to its efficient15
management of state health insurance dollars and has administrative cost of only 3.5 percent.16
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana hereby declares17
that the Office of Group Benefits is providing the citizens of Louisiana with the most cost-18
effective and compressive program of life and health benefits to its members and that no19
change in its method of providing these services will result in any substantial cost savings20
to the state.21
BE IT FURTHER RESOLVED that in furthering administration goals for more22
transparency in state government and access to information, particularly access to23
information upon completion of the "deliberative process", any submission to the Joint24
Legislative Committee on the Budget, or other legislative body, involving a proposed change25
to the operations of OGB, also be forwarded to each member of the legislature.26
BE IT FURTHER RESOLVED that prior to any action by the Joint Legislative27
Committee on the Budget, or other legislative body, involving the proposal, all members of28
the legislature be given reasonable opportunity to express to the committee or body their29
views regarding the proposal.30 SCR NO. 62
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BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to1
Governor Bobby Jindal, Commissioner of Administration Paul Rainwater and to the Joint2
Legislative Committee on the Budget.3
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Thomas L. Tyler.
DIGEST
Gautreaux SCR No.
Declares that the Office of Group Benefits is providing the citizens of Louisiana with the
most cost effective and compressive program of life and health benefits to its members and
that no change in its method of providing these services will result in any substantial cost
savings to the state.
Resolves that in furthering administration goals for more transparency in state government
and access to information, particularly access to information upon completion of the
"deliberative process", any submission to the Joint Legislative Committee on the Budget, or
other legislative body, involving a proposed change to the operations of OGB, also be
forwarded to each member of the legislature.
Resolves that members of the legislature, prior to any action by the joint committee, or other
legislative body, involving the proposal, be given reasonable opportunity to express their
views regarding the proposal.