Gov. Bobby Jindal’s administration is privatizing management of some state worker benefits, hiring a Chicago-based company to oversee family and medical leave programs across nine agencies.
As The Associated Press reports, the administration announced Wednesday the hiring of ComPsych, for a one-year contract that will cost $497,000 and could be renewed for two additional years. The Jindal administration says the move will save the state $5,213,000 this fiscal year.
ComPsych will oversee federal requirements governing leaves of absence for birth or adoption of a child, a worker’s medical condition or care of a family member with a serious illness. ComPsych will handle the programs for nine cabinet agencies, including the economic development, public safety, corrections, health, transportation, social services, juvenile justice and revenue departments and the Division of Administration. More than 21,000 employees work for the nine agencies included in the contract.
The Jindal administration said privatization will save the state money because each department will no longer have to run its own program.
“We will be able to more effectively administer (Family and Medical Leave Act) services to employees while at the same time saving the state over $5 million in this fiscal year,” says Commissioner of Administration Kristy Nichols in a prepared statement.
