Audit: Privatization of state insurance program saved $10M
BATON ROUGE - A new audit says former Gov. Bobby Jindal's privatization of claims processing and loss prevention services for Louisiana's self-insurance program saved the state money, though less than projected.
The Jindal administration privatized the Office of Risk Management work in June 2010, awarding the $75 million contract to Mandeville-based F.A. Richard and Associates Inc., or FARA.
In a review released Monday, the Legislative Auditor's Office said FARA - which held the privatization deal through June 2015 - saved the state $9.8 million over five years, rather than the $22 million projected by the Jindal administration.
The risk management office is Louisiana's self-insurer, with agencies paying premiums for lines of insurance covering items such as medical malpractice, worker's compensation cases, property damage and road hazards. A different company now holds the contract.