State Employees Group Benefits Program Study Commission

WHEREAS: it is the responsibility of government, not only to provide a benefits program for its employees that includes a quality health insurance product, but also to periodically review and improve the governance, professional management, and accountability of that benefits program;

WHEREAS: to fulfill this duty, the State Employee Group Benefits Program (hereafter "SEGBP") was created to provide affordable health care to its members, who are the employees and retirees of the State of Louisiana;

WHEREAS: members of the SEGBP have raised a number of concerns regarding the implementation of the SEGBP health care program that should be heard in a public forum and then thoroughly reviewed, including premium increases, reductions in the number of available health care providers, and the manner in which claims are handled; and

WHEREAS: the interests of the members of the SEGBP can be best served by the creation of a commission, composed of members of the legislature, the executive branch, the SEGBP, and the health care community to study the issues raised by the SEGBP members and recommend appropriate solutions to resolve their concerns;

NOW THEREFORE I, M.J. "MIKE" FOSTER, JR., Governor of the State of Louisiana, by virtue of the authority vested through the Constitution and the laws of the State of Louisiana, do hereby order and direct as follows:

SECTION 1: The State Employees Group Benefits Program Study Commission (hereafter "commission") is created and 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. analyzing the SEGBP program; examining options for affordable health care from a variety of health care providers; examining industry standards for acceptable claim handling practices; examining industry standards for the governance, professional management and structure of a state health care program; and examining the benefits packages, the options, and the cost structure of the health care programs of other states;

  • B. studying the feasibility of improving the SEGBP through privatization; by providing legislative contractual review and oversight; and/or through rules and/or legislation designed to ensure that the SEGBP provides quality and affordable services to its members; and

  • C. conducting public hearings to receive input from SEGBP members, stakeholders and others that are impacted or affected by the SEGBP.
  • SECTION 3: The commission shall submit a comprehensive written report to the Governor by February 1, 1998, which addresses the issues set forth in Section 2.

    SECTION 4: The commission shall be composed of 29 members who shall be appointed by and serve at the pleasure of the Governor. The members shall be selected as follows:

  • A. the chief of staff, or the chief of staff's designee;

  • B. the commissioner of Administration, or the commissioner's designee;

  • C. the commissioner of Insurance, or the commissioner's designee;

  • D. the secretary of the Department of Health and Hospitals, or the secretary's designee;

  • E. the legislative auditor, or the legislative auditor's designee;

  • F. one director of human resources management from a state college or university;

  • G. three members of the Louisiana House of Representatives;

  • H. three members of the Louisiana Senate;

  • I. one retired state employee who is a member of the SEGBP;

  • J. one current state employee who is a member of the SEGBP;

  • K. one current SEGBP board member;

  • L. one representative of health insurance providers;

  • M. one representative of health care providers;

  • N. one representative of the Louisiana Managed Healthcare Association, nominated by the association;

  • O. one health industry business representative;

  • P. one private corporation human resource representative;

  • Q. two physicians;

  • R. one representative of the AFL-CIO; and

  • S. six at-large members.
  • SECTION 5: The Governor shall appoint the chair from its membership. All other officers shall be elected by the commission.

    SECTION 6: The commission shall meet at regularly scheduled intervals and at the call of the chair.

    SECTION 7: A simple majority of the members of the commission shall constitute a quorum for the transaction of business. All actions of the commission shall require a majority vote of the members of the commission.

    SECTION 8: Commission members shall not receive compensation or a per diem. Nonetheless, contingent upon the availability of funds, commission members who are not employed by the state or an elected official may receive reimbursement for actual travel expenses, in accordance with state guidelines and procedures, upon the approval of the commissioner of Administration.

    SECTION 9: All departments, commissions, boards, agencies, and officers of the state, or any political subdivision thereof, are authorized and directed to cooperate in the implementation of the provisions of this Order.

    SECTION 10: This Order is effective upon signature and shall remain in effect until March 31, 1998, or until amended, modified, terminated, or rescinded by the Governor.

    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 24th day of October, 1997.

    M.J. "Mike" Foster, Jr.

    Fox McKeithen

    Secretary of State