Louisiana State Employees File Lawsuit over Changes to Insurance Program

A group of state employees and retirees is asking a judge to reverse changes made to their insurance program, which cost many workers more out-of-pocket for lessened benefits.

The lawsuit, announced on April 22, was filed in state district court a day earlier. It claims Gov. Bobby Jindal’s administration didn’t follow state law in reworking the health insurance plans offered through the Office of Group Benefits.

The lawsuit also alleges the Jindal administration didn’t give workers and retirees a reasonable opportunity to comment on the changes, violated their contract rights and didn’t properly oversee the insurance program.

The Jindal administration blamed rising health care costs and new federal regulations for the need to rework the insurance program’s benefit plans. Commissioner of Administration Kristy Nichols says the plan changes followed the legally-required process.