Blue Cross wins contract to run state health plans

Blue Cross and Blue Shield of Louisiana has been chosen by Gov. Bobby Jindal's administration to take over the job of managing a state employee health care plan.

The company was the lowest bidder, The Advocate reports offering to do the work cheaper than Humana and United Healthcare, beginning Jan. 31.

The hiring could lead to the loss of more than 150 state government jobs, ending the long-standing practice of state employees handling health plans for the state workforce, retirees and dependents. Neither the layoffs nor the contract can occur without the Civil Service Commission's approval.

Michael DiResto, spokesman for the Division of Administration, says Blue Cross/Blue Shield stands to receive $37.8 million a year to serve as an administrator.