The Jindal administration is moving ahead with its aim of privatizing a state employee insurance plan administered by the Office of Group Benefits. A financial adviser will be chosen later this month after the request for proposals closes on Monday, according to Commissioner of Administration Paul Rainwater. The adviser will help put together a solicitation of offers from insurance companies to take over OGB’s book of business for the preferred provider organization. Rainwater has estimated the contract would be worth an upfront payment to the state of $150 million for a three- to five-year contract, but no proceeds are included in the budget bill under consideration. The privatization move does not need approval by the full Legislature, but the contract would have to be ratified by the Joint Budget Committee.
— The House Education Committee gave the green light to two Jindal administration proposals to allow college tuition and fee increases. But if the measures get the same reception on the House floor that was afforded the other big administration higher education initiative, college students and their parents don’t have to worry. HB 448 by Rep. Hollis Downs, R-Ruston, would remove the 12-hour cap on tuition and allow governing boards to charge per credit hour up to 15 hours, which would raise $75 million. HB 97 by Rep. Frank Hoffman, R-West Monroe, would allow more increases in operating fees. But winning a two-thirds majority on the House floor could prove much more difficult. The Jindal administration failed to get a supermajority in the House to merge University of New Orleans and Southern University at New Orleans.
(John Maginnis will publish a daily update on the legislative session at 3 p.m., available to LaPolitics Weekly subscribers on the Subscribers Only page at LaPolitics.com. You can register your user name and password on the Lapolitics home page.)
