The Division of Administration’s decision to privatize the state’s self-insurance operation is winning applause from the libertarian-leaning Reason Foundation. The foundation says while states routinely operate self-insurance programs to handle property and casualty risks as well as claims made against the state, the operations can be handled privately. Commissioner of Administration Angčle Davis says by outsourcing the duties to FARA, a Mandeville company, the state will save at least $20 million over five years. The 85 employees who oversaw risk management for the state will all be offered jobs with FARA because of the specialized nature of their work. This is the second time in recent months Davis has been honored by the Reason Foundation; in February she and Education Superintendent Paul Pastorek were named Innovators in Action, for leading programs that deliver “real results and value” for taxpayers.
Group praises Davis’ privatization efforts
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