Vote shelved on Jindal plan to outsource state employees' insurance

Published Nov 1, 2012 at 3:00 pm (Updated Nov 1, 2012)

Gov. Bobby Jindal's top budget adviser scrapped a planned legislative vote today on the governor's proposal to hire a private company to manage a state employee health insurance plan. Commissioner of Administration Kristy Nichols pulled the proposed contract between the Office of Group Benefits and Blue Cross and Blue Shield of Louisiana from consideration by lawmakers when it became clear she didn't have enough support for approval. The House and Senate budget committees ended their joint meeting in a flurry of votes that went nowhere because the two sides couldn't seem to agree on anything, even a vote to delay a decision on the contract until next week. The Jindal administration says the outsourcing plan would save money. Critics question the savings estimates and worry the change could lead to a reduction in health benefits for workers.