EXECUTIVE ORDER MJF 00-46

EXECUTIVE ORDER MJF 00-46

State Employees Health Benefits Study Commission


WHEREAS, the state of Louisiana currently offers health benefits to employees of state agencies, school boards, and various political subdivisions through the State Employees Group Benefits Program (hereafter "SEGBP");

WHEREAS, in excess of 120,000 state, school board, and political subdivision employees receive health benefits through SEGBP;

WHEREAS, in excess of 220,000 individuals receive health benefits through SEGBP;

WHEREAS, health care costs are increasing at double-digit rates and are projected to do so into the future;

WHEREAS, the well-being of the state government workforce is vital to the proper functioning of state government and to the people of the state;

WHEREAS, it is essential to the well-being of the government workforce that its employees have access to the best possible health care services at the lowest possible rates;

WHEREAS, the current options and rate structures offered by SEGBP face rising costs and may be or may become actuarially unsound; and

WHEREAS, the interests of the state and its employees can best be served by the creation of a commission to study the best way to provide high quality health benefits to state employees at the lowest price possible;

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

SECTION 1: The State Employees Health Benefits 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:

1. Reviewing and analyzing the current health benefit options and rate structures offered through SEGBP;

2. Identifying and evaluating options for the delivery of health benefits to participating employees, in a manner which is actuarially sound;

3. Identifying and evaluating all reasonable options to improve the efficiency and cost effective administration of SEGBP, including program oversight, internal administration, and privatization;

4. Examining and evaluating the future impact of providing health benefits on the state budget; and

5. Conducting public hearings to receive input from SEGBP plan members, stakeholders, and others who are affected by SEGBP.

SECTION 3: The Commission shall submit a comprehensive written report to the governor by February 28, 2001, which addresses the issues set forth in Section 2. The Commission shall submit an interim report to the governor within sixty (60) days from its first meeting.

SECTION 4: The Commission shall be composed of fourteen (14) members who, unless otherwise specified, shall be appointed by, and serve at the pleasure of, the governor. The membership of the Commission shall be selected as follows:

1. The commissioner of administration, or the commissioner's designee;

2. The chair of the State Employees Group Benefits Program Board of Trustees, or the chair's designee;

3. Two (2) members of the State Employees Group Benefits Program Board of Trustees, appointed by the governor;

4. One (1) member employed by the Louisiana Department of Insurance with expertise in health insurance matters, appointed by the governor;

5. Three (3) members of the Louisiana House of Representatives, which shall include one (1) member of the House Appropriations Committee, to be appointed by the Speaker of the House of Representatives;

6. Three (3) members of the Louisiana Senate, which shall include one (1) member of the Senate Finance Committee, to be appointed by the president of the Senate;

7. One (1) member with expertise in the delivery of medical care services, appointed by the governor;

8. One (1) member with expertise in the financing of health care services, appointed by the governor; and

9. One (1) member employed by an institution of higher education with expertise in the field of health care services, appointed by the govenor;

SECTION 5: The governor shall select the chair of the Commission. The membership of the Commission shall elect all other officers.

SECTION 6: The Commission shall meet monthly and at the call of the chair.

SECTION 7: Support staff, facilities, and resources for the Commission shall be provided by the State Employees Group Benefit Program.

SECTION 8: All departments, commissions, boards, agencies, and officers of the state, or any political subdivision thereof, are authorized and directed to cooperate with the Commission in implementing the provisions of this Order.

SECTION 9: This Order is effective upon signature and shall continue in effect until amended, modified, terminated, or rescinded by the governor, or terminated by operation of law.

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 16th day of November, 2000.

M.J. "Mike" Foster, Jr.
Governor

ATTEST BY
THE GOVERNOR
Fox McKeithen
Secretary of State