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Last modified
7/12/2021 9:52:23 AM
Creation date
3/9/2020 9:53:16 AM
Metadata
2020-058
Fields
Template:
Opinion Item
Opinion Type
Advisory Opinion
Docket Number
2020-058
Requesting Party
Michael Echols
Decision Date
3/6/2020
Law
La. R.S. 42:1113C
La. R.S. 42:1113D
La. R.S. 42:1111C(2)(d)
La. R.S. 42:1112
Caption
Advisory Opinion whereby the Code of Governmental Ethics would not prohibit Vantage health Plan from entering into a contract with the Office of Group Benefits while State Representative Michael Echols and his wife own less than 25% of Vantage Holdings, Inc.
Ethics Subject Matters
Prohibited Contracts
Prohibited Transactions
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criteria) submits a competitive offer, proposal, bid, or other response to a solicitation for health <br /> care benefits, then OGB "shall include"that Louisiana HMO in its plan of benefits. <br /> Office of Group Benefits Procurement Process <br /> Pursuant to the powers above, OGB works with the Office of State Procurement to have a Request <br /> for Proposal issued calling for proposals with regard to benefit packages for employees of the State <br /> of Louisiana. The specifications are determined by OGB.A review team, consisting of employees <br /> from OGB, Office of Risk Management, Office of State Purchasing, and an actuarial/benefits <br /> consultant, then review the proposals to select the ones most beneficial to the employees. OGB <br /> then makes a recommendation to the Joint Legislative Committee on the Budget. That committee <br /> then either approves or disapproves of the recommendation based on its adoption into the state <br /> budget. <br /> Vantage Health Plan as a Health-Care Provider <br /> Vantage Health Plan has for years been offered a health plan option for state employees and retirees <br /> through OGB.Vantage Health Plan is currently one of four companies that offer health plan options <br /> through OGB. Vantage Health Plan is currently the only health provider that meets the criteria of <br /> La. R.S. 42:802.1.As a result, Vantage is required by statute to be approved as one of the health <br /> care provider options. <br /> In connection with the proposal, Vantage Health Plan, Inc. has entered into two contracts with <br /> OGB: <br /> (1) No. 2000367811: For the provision of a Health Maintenance Organization (HMO) <br /> Physician and Hospital Provider Network: <br /> This contract was signed on September 6,2018,by Tommy Teague, CEO for OGB and Dr.Patrick <br /> Jones, on behalf of Vantage Health Plan, Inc. The value of the contract is $140,500,000. This <br /> contract expressly provides that"prior approval by the Joint Legislative Committee on the Budget <br /> and/or other approval authorized by law shall be obtained" prior to the extension of the contract <br /> beyond the initial 36-month term. However,this contract was amended on November 1, 2019, but <br /> did not require approval by the Joint Legislative Committee on the Budget since it was under the <br /> $1 Million threshold. <br /> (2) No. 2000380092: For the provisions of one or more Medicare Advantage Plans for <br /> Medicare-eligible OGB retired participants. <br /> This contract was signed on October 29, 2018, by Tommy Teague, CEO for OGB and Dr. Patrick <br /> Jones, on behalf of Vantage Health Plan, Inc. The value of the contract is $12,000,000. This <br /> contract expressly provides that"prior approval by the Joint Legislative Committee on the Budget <br /> and/or other approval authorized by law shall be obtained" prior to the extension of the contract <br /> beyond the initial 36-month term. However, this contract was amended on October 17, 2019, but <br /> Page 2 of 5 (Docket No. 2020-058) <br />
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