Attorney General: Jindal outsourcing plan needs legislative approval

The Louisiana attorney general's office says a Jindal administration plan to hire a private company to manage a state employee health insurance plan requires legislative approval.

In a legal opinion issued Friday, Assistant Attorney General Michael Vallan said the proposed contract between the Office of Group Benefits and Blue Cross/Blue Shield "is subject to review and final approval" by the legislative committees that have jurisdiction over similar matters.

The opinion was issued in response to a request from Monroe Rep. Katrina Jackson, a Democrat who disagrees with the privatization plan.

Gov. Bobby Jindal plans to hire Blue Cross/Blue Shield to run an insurance plan in the Office of Group Benefits that covers more than 62,000 employees, retirees and their dependents. The outsourcing is set to take effect Jan. 1.