Privatization debate heats up; opponents start to mobilize

By the end of this month, the administration of Gov. Bobby Jindal is expected to have an adviser in place for the potential privatization of the Office of Group Benefits. This is the agency charged with overseeing the state’s employee health plan. So far there are three contenders, including Barclays Capital, Goldman Sachs and Morgan Keegan. For its part, the Retired State Employees Association of Louisiana isn’t staying quiet about its opposition. In fact, Executive Director Frank Jobert Jr. says his group has joined forces with the retired teachers association, judges association and the OGB Board in opposing privatization. “Privatization can only lead to increased premiums, benefits reduction or a combination of both,” Jobert says. Moving forward, one of the central arguments you’ll hear is that many current and former state employees and retirees are not eligible for Medicare coverage, since they do not participate in the Social Security Program. “They rely exclusively on OGB plans for their coverage and are possibly to be left out of any private health care plan due to their high risk and medical condition,” Jobert says. “Are they to become Medicaid patients?” Jindal told reporters during a press conference yesterday that the selection of an adviser later this month will help put some of these concerns into context. —Jeremy Alford