Office of Group Benefits
Study Commission
WHEREAS, the state of Louisiana
currently offers health benefits to employees, retirees, and
dependents of state agencies, school boards, and various political subdivisions
through the Office of Group Benefits (hereafter "OGB");
WHEREAS, in excess of two hundred
twenty thousand (220,000) state, school board, and political subdivision
employees, retirees, and their dependents currently receive health benefits
through OGB;
WHEREAS, OGB is projecting a FY 2003
operating budget in excess of $800 million;
WHEREAS, health care and
pharmaceutical costs are increasing at double-digit rates across the nation and
are projected to do so into the future;
WHEREAS, the current options and rate
structures offered by OGB face rising costs similar to other plans across the
nation;
WHEREAS, providers have expressed
dissatisfaction with the claims processing, reimbursement rates and
reimbursement methodology;
WHEREAS, the well-being of the state
government workforce is vital to the proper functioning of state government and
to the people of the state;
WHEREAS, it is essential to the
well-being of the state government workforce that its employees have access to
the best possible health care services at the lowest possible rates;
WHEREAS, Executive Order No. MJF
2000-46, issued on November 16, 2000, created the State Employees Group
Benefits Program Study Commission (hereafter "SEGBPSC")
WHEREAS, recommendations of the
SEGBPSC were implemented by Act No. 1178 of the 2001 Regular Session of the
Louisiana Legislature;
WHEREAS, SEGBPSC also recommended
that a subsequent study commission be established to address issues not
included within its recommendations, such as long range planning; and
WHEREAS, the interests of the state
of Louisiana and its employees can best be served by the creation of a new
commission to study the best way to provide high quality health benefits to
state employees at the lowest price possible;
NOW
THEREFORE, I, M.J. "MIKE" FOSTER, JR., Governor of the state of Louisiana, by virtue of the authority vested
by the Constitution and laws of the state of Louisiana, do hereby order and
direct as follows:
SECTION
1: The
Office of Group Benefits Study Commission (hereafter "Commission) is
established within the executive department, Office of the Governor.
SECTION
2: The
duties and functions of the Commission shall include, but are not limited to,
the following:
A. Conducting
an Internal Operational Assessment to review, analyze, and benchmark health
options and rate structures offered through OGB;
B. Identifying
and evaluating best practice options to improve the efficiency and cost
effective administration of OGB, including internal administration, staffing
models, outsourcing, and privatization;
C. Identifying
and evaluating best practice options for the most cost effective and efficient
delivery of pharmaceutical benefits, including proactive pharmacy benefits
management;
D. Analyzing
the future impact of providing health benefits on the state budget; the
requirements of the Federal Health Insurance Portability and Accountability Act
of 1996; and the proposed Patients Bill of Rights legislation;
E. Examining
and evaluating the existing provider reimbursement methodology and
reimbursement rates, timeliness of payments, and making recommendations for
improvements;
F. Exploring
competitive medical management systems, including recommending and/or piloting
innovative health benefits options;
G. Exploring
a Medicare buy-in for those employees and retirees not covered; and
H. Conducting
public hearings to receive input from Group Benefits plan members,
stakeholders, and others who are affected by OGB.
SECTION
3: The
Commission shall submit a comprehensive written report to the governor by
December 5, 2002, which addresses the issues set forth in Section 2 of this
Order.
SECTION
4: With the
exception of the members of the Louisiana Legislature, all members of the
Commission shall be appointed by the governor. With the exception of the
legislative and executive members, all members shall serve at the governor's pleasure. The Commission shall be composed of eighteen (18) members
selected as follows:
A. The
commissioner of administration, or the commissioner's designee;
B. Three (3)
members of the Senate, appointed by the president of the Senate, including the
chair of the Senate Committee on Finance;
C. Three (3)
members of the House of Representatives, appointed by the speaker of the House
of Representatives, including the chair of the House Committee on
Appropriations.
D. The
secretary of the Department of Health and Hospitals, or the secretary=s designee;
E. The
superintendent of the Department of Education, or the superintendent=s designee;
F. The CEO of
Louisiana State University Health Science Center, or the CEO=s designee;
G. The chair
of the Office of Group Benefits Planning and Policy Board, or the chair=s designee;
H. One (1)
member who is employed by the Department of Insurance with expertise in health
insurance matters;
I. One (1)
member of the Louisiana Hospital Association;
J. One (1)
member who represents active state employees;
K. One (1)
member who represents retired state employees;
L. One (1)
member who is employed by an institution of higher education with expertise in
the field of health care services;
M. One (1)
member who represents the business insurance industry; and
N. One (1)
member with expertise in the delivery of medical care services.
SECTION
5: The
governor shall appoint the chair of the Commission. All other officers, if any,
shall be elected by the membership of the Commission.
SECTION
6: The
Commission shall meet at regularly scheduled intervals and at the call of the
chair.
SECTION
7: Support
staff, facilities, and resources for the Commission shall be provided by the
Office of Group Benefits.
SECTION
8: All
departments, commissions, boards, agencies, and officers of the state, or any
political subdivision thereof, are authorized and directed to cooperate with the
Commission in implementing the provisions of this Order.
SECTION
9: This
Order is effective upon signature and shall continue in effect until amended,
modified, terminated, or rescinded by the governor, or terminated by operation
of law.
IN
WITNESS WHEREOF, I have set my hand
officially and caused to be affixed the Great Seal of Louisiana, at the
Capitol, in the city of Baton Rouge, on this 5th day of September, 2002
M.J. "Mike"
Foster, Jr.
Governor
ATTEST
BY
THE
GOVERNOR
Fox
McKeithen
Secretary
of State