If you’re a state employee or retiree
and a member of one of the state’s Office of Group Benefits Insurance Plans,
better prepare yourself for premium sticker shock accompanied by increased out
of pocket expenses and reduced health care benefits.
A recent commentary by one of the
newer Jindal appointed Group Benefit Policy and Planning Board members goes on
and on about how the privatization by Jindal of the Group Benefits Office has
led to a more efficient insurance system. Interestingly, most of
the praise and data that this appointee references about the Group Benefits
Office, in terms of providing good benefits while successfully keeping premium
increases below the national average, occurred during the years BEFORE Jindal’s
privatization move.
For those not familiar with the
Office of Group Benefits, basically prior to 2012, state-paid employees
administered health insurance for state employees and retirees. Their
responsibilities included processing claims, running a state designed PPO plan
and formulating contractual agreements with health care providers such as
Humana, United Health, BlueCross/Blue Shield, etc. to provide HMO service
plans for participants.
Contrary to what we usually think
about state employee run ventures, they did such a great job that Group
Benefits was recognized as one the most successful and efficiently run health
insurance entities in the country. Their self-run PPO plan was also
lauded for it success. They had amassed a health reserve fund of over a half
billion dollars and kept health cost premiums contained while providing
excellent benefits to its plan members.
That all changed when Bobby and his
crew took over, fired just about everyone working there, and farmed out the services to a private corporation in the name of cost
savings. Additionally, he made changes to the group benefits governing
board.
Jindal and his experts in just two
years have taken a successful operating insurance system and turned it into
an operating loss, with its health reserve fund now almost
depleted. The Louisiana Voice reports that, “Jindal’s
plan for saving $20 million a year through the privatization of OGB has been
less than a smashing success as the agency has hemorrhaged red ink to the tune
of $16 million more per month than it receives in premiums.”
Now the PR from Group Benefits
Jindal-appointed board members is that the plans previously offered by the
Office of Group Benefits are ,”so rich that if they aren’t changed they will
trigger a ‘Cadillac tax’ of $31 million in upcoming years.”
If all that sounds confusing
basically it means that they’ve screwed up the good health insurance plans
previously offered to state employees and retirees so badly that they’re going
to have to bail out these plans on the backs of the members by raising
deductibles, reducing services, and raising premiums. And the great part
is the Jindal administration doesn’t have to worry about being blamed for any
of this because they are just going to tell everyone that it’s the result of
Obamacare.
However, it is important to realize
that the real goal for the Jindal administration is to force ALL state
employees and retirees out of the Group Benefits Health Insurance Plans
altogether, for the state currently pays part of a retiree’s health insurance
premium. This partial premium payment is legislatively mandated and
the chances of getting it repealed are miniscule. And, since Bobby has
cut education and medical services to the bone and still can’t produce a
balanced state budget, he is running out of sources of money. Therefore
he has set his sights on reducing participants in Group Benefits Health
Insurance Plans to fill the budgetary gaps by making the plans unattractive and
unaffordable for the services and coverages offered.
Of course, the resultant outcome of
Bobby’s latest plan will be more uninsured in Louisiana.
I just pray we can all stay healthy
and survive until Jindal leaves office.
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