Louisiana Considers ‘Bare-Bones’ Health Insurance Option for State Employees Who Currently Opt Out of Coverage

The head of Louisiana's state employee health insurance program on Aug. 29 said that officials are working to create a "low-cost, bare-bones" health insurance option for the more than 34,000 state employees who do not currently opt for state insurance, the Baton Rouge Advocate reports. Kip Wall, CEO of the state Office of Group Benefits, told an advisory board to the office that the plan would provide coverage for "basic" health care, such as doctor visits and "some" hospital care, and "limited" prescription drug coverage. Wall said that he hopes employees' contribution for individual coverage would be less than $100 per month, and that it could "possibly" be less than $50 per month. The plan would "likely" be capped at $50,000 per year, Wall said. The Advocate reports that the plan "wouldn't be of much assistance" for catastrophic health problems such as chronic heart disease. Wall said that the cost of prescription drugs would be shared evenly between the employee and the state. Other elements, such as out-of-pocket spending limits, have not yet been resolved, the Advocate reports. Wall told the advisory board that he hopes to have details about the plan in a month. Group Benefits officials need to complete changes to the plan in the next few months so that the information will be ready when state employees make their coverage decisions next spring. The plan would take effect July 1. The Advocate reports that the state is considering other modifications to the state employees' health insurance program, including:

• Raising to 65% the state's contribution to workers' premiums, and 50% for dependents;
• Creating "medical flexible spending accounts" to allow employees to pay for some medical expenses with pre-tax earnings;
• Creating a "discount network" for optional dental and vision care; and
• Covering surgical treatment for "morbid obesity"