State Sen. Butch Gautreaux, term-limited and erstwhile humiliated lieutenant governor candidate by voters, repeated the lie that privatization would allow the state to give away the roughly $500 million reserve that the state uses in its self-administered plan to a buyer, when the law clearly states that cannot be done; R.S. 49:802 et seq. mandates that monies from contributions and to be paid out by claims must be held for those purposes in a fund that is “guaranteed.”
- Louisiana is only one of two states that even has part of these benefits provision run by the state. If this model is so good and so cost-effective, why don’t more states follow it?
- Repeating that question, why is it that most Louisiana employees and retirees choose the HMO and similar smaller plans rather than the PPO? If the PPO plan is so good, why even have the others?
- Because of the pricing differential born of the inefficiency in government operations, the PPO costs contributors an estimated extra $21.2 million yearly, which is fine if they want to pay more for the same service. But the problem is, because of the taxpayer match, this costs non-state households an extra $33.3 million annually, and the extra employees the state is forced to carry to run its own plan is another $10.2 million a year. Why should the state absorb these extra, unnecessary costs?