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Regular Session, 2011 ENROLLED
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 AND REPRESENTATIVES
ANDERS, ARMES, ARNOLD, AUBERT, AUSTIN BADON, BOBBY
BADON, BALDONE, BARRAS, BARROW, BISHOP, BROSSETT,
BURRELL, CARMODY, CROMER, DIXON, DOERGE, EDWARDS,
ELLINGTON, GALLOT, GISCLAIR, GUILLORY, GUINN, HARDY,
HARRISON, HENDERSON, HENRY, HILL, HONORE, HOWARD,
GIROD JACKSON, JOHNSON, SAM JONES, LEBAS, LEGER, LIGI,
MONTOUCET, MORENO, POPE, RI TCHIE, ROY, GARY SMITH,
PATRICIA SMITH, ST. GERMAIN, STIAES, THIBAUT, THIERRY,
WILLIAMS AND WILLMOTT
A CONCURRENT RESOLUTI ON
To express the intent of the legislature to provide comprehensive, affordable life and health
benefits for current and retired public employees and their family members through
the operation of the Office of Group Benefits.
WHEREAS, the role of the Office of Group Benefits (OGB) in providing life and
health benefits to public employees, particularly coverage under its self-administered PPO
plan, has become an issue of intense interest for the people of the state, particularly current
public employees and retirees receiving benefits through OGB; and
WHEREAS, the Division of Administration, through OGB, issued a request for
proposals (RFP) on May 6, 2011, seeking to retain the services of a financial advisor to
assess the market value of the book of business and services provided by OGB and negotiate
on its behalf alternative methods by which OGB may perform its statutory responsibilities
to provide affordable life and health benefits to public employees in Louisiana; and
WHEREAS, proposals under the RFP are due to OGB on June 6, 2011, with a
tentative timeline for the start of any contemplated alternative methods as January 1, 2012;
and
WHEREAS, while the focus of public discussion has, at times centered on OGB's
PPO, which is self-administered by OGB, the RFP seeks information regarding the sale of SCR NO. 62 ENROLLED
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the entire book of business and services under all plans under OGB: the HMO-Blue Cross
plan; the PPO-OGB plan; the CDHP/HSA-UHC plan; the MHHP-VHP plan; the Medicare
Adv plan; and the LSU-CIGNA plan; and
WHEREAS, administration statements before the Senate Committee on Retirement
range from "a sale and privatization of the Office of Group Benefits will have no negative
impact for those covered . . . " to "we're not selling the Office of Group Benefits" indicate
a lack of transparency and forthrightness from the administration; and
WHEREAS, over 30 years OGB has developed a network which includes every
hospital in the state except one, obtained discounts with medical providers across the state
which are returned to OGB in the form of savings, and as a result of becoming self-insured
with efficient and competent management OGB was able to correct a $36 million negative
fund balance in 2006 to a $520 million positive fund balance; and
WHEREAS, the lack of transparency, access to information, and inconsistency in
testimony has failed to convince the members of the legislature as to the wisdom of
privatizing or selling OGB when it has a $520 million surplus due to its efficient
management of state health insurance dollars and has administrative cost of only 3.5 percent.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana hereby 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.
BE IT FURTHER RESOLVED 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.
BE IT FURTHER RESOLVED that prior to any action by the Joint Legislative
Committee on the Budget, or other legislative body, involving the proposal, all members of
the legislature be given reasonable opportunity to express to the committee or body their
views regarding the proposal. SCR NO. 62 ENROLLED
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BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to
Governor Bobby Jindal, Commissioner of Administration Paul Rainwater and to the Joint
Legislative Committee on the Budget.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES