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 Civil Service Commission has narrowly agreed to a Jindal administration plan to hire a private company to manage a state employee health insurance plan.
The panel voted 3-2 Wednesday to allow Blue Cross/Blue Shield to run an insurance plan in the Office of Group Benefits that covers more than 62,000 employees and their dependents. The outsourcing will take effect Jan. 1.
The move will eliminate 177 state jobs — 121 of which are currently filled.