On Friday, the Policy and Planning Board of the Louisiana Office of Group Benefits (OGB) met to consider a proposed rate hike. Increasing rates would result in added health insurance costs for teachers and school employees across the state, along with other public employees.
LFT sent out an action alert as soon as news of the meeting was made public. In less than 24 hours, thousands of teachers and school employees wrote to the board, asking them to vote ‘no’ on the proposed increase to the cost of their insurance.
LFT Legislative and Political Director Cynthia Posey spoke before the Board on Friday, relaying the concerns of our members and asking the board members to oppose any rate hikes this year. While we fully recognize the importance of having a stable, well-funded account balance that will ensure reliable insurance coverage for our members, we oppose efforts to unnecessarily increase costs. Currently, the OGB fund is well above target rates. The Louisiana Legislative Auditor recommends that the OGB fund balance should be roughly $275 million. Currently, it sits at $430.8 million. This is money that state agencies and state employees, like teachers and school employees, have paid into the system.