Seeking to Privatize, Louisiana Ousts Chief of Group Benefits Office

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Louisiana Gov. Bobby Jindal’s administration on April 15 ousted the CEO of the state-run health insurance office, the Office of Group Benefits, as the governor seeks to privatize parts of the operation.

The governor’s commissioner of administration, Paul Rainwater, announced Tommy Teague’s replacement without ever having announced that Teague was being fired.

“He was informed that Commissioner Rainwater decided to bring in new leadership at OGB. He was given the opportunity to retire but chose not to,” Division of Administration spokesman Michael DiResto said in an e-mail.

Attempts by The Associated Press to reach Teague weren’t immediately successful. In an interview with The Advocate newspaper, Teague said he wasn’t given a reason for his firing.

The Office of Group Benefits provides health insurance and life insurance to more than 148,000 current state workers and retirees and more than 107,000 of their dependents. Jindal is seeking to hire a private company to run some of the health plans.

Teague has been replaced by Scott Kipper, a deputy commissioner in the state insurance department.

Kipper will receive a $150,000 annual salary, down from the $170,000 paid to Teague, according to DiResto.

Asked if Teague disagreed with administration plans to privatize health insurance plans overseen by group benefits, DiResto said he wasn’t aware of any disputes.

“The administration has been very open about plans for reforms and policy changes at OGB, and it’s essential to have strong leadership at OGB. You look at Scott Kipper’s resume, you see his extensive health insurance background, the fact that he was insurance commissioner of other states, and we’re just thrilled that we have an opportunity to have him serve at OGB,” DiResto said.

Kipper has worked as deputy commissioner at the Louisiana Department of Insurance since June 2010, and from September 2005 through the end of 2007.

He was the administrator of the Oregon Division of Insurance in 2008 and the Nevada insurance commissioner after that, until June 2010. He’s worked on insurance and regulatory issues in Oregon, California, Texas and Colorado. He started his career as an insurance agent in Wyoming.