(The Center Square) – The Louisiana Joint Legislative Committee on the Budget on Thursday approved more than $1.1 billion in emergency contracts for the state’s Office of Group Benefits, including new agreements with Blue Cross and Blue Shield of Louisiana, SilverScript Insurance Company, and Liviniti, to manage health and pharmacy benefits for state and local government employees.
The committee reviewed an extension of OGB’s administrative services-only contract with Blue Cross, which manages the medical side of the state’s employee health plan. OGB officials said the emergency extension runs through Dec. 31, 2026, giving the agency time to complete an ongoing procurement process.
Two additional pharmacy benefit manager contracts — which collectively total more than $1.1 billion — drew lawmakers’ attention. Liviniti’s contract for the commercial plan is valued at roughly $390 million. At the same time, SilverScript, a CVS Health subsidiary, will manage the state’s Medicare Part D employer group waiver plan under a $724 million agreement. Heath Williams, who helps manage state health benefits, said that he could not promise he would not request more money for the contracts next year.
“Some of these drugs cost $50,000 or more,” Williams said. “As part of this process, what we’re doing is we’re gleaning transparency. But the question is, what do you do with that transparency in order to curb some of these expenditures and those costs?”
Rep. Tony Bacala, R-Prairieville, pressed OGB officials on transparency and accountability in the pharmacy benefit manager arrangements. He noted that many local governments have reported savings after switching PBMs, but Williams responded that this was only if they were previously locked into poor contracts.
“If you don’t have a bad deal, you may not save anything,” Williams said.
A major concern remains the transfer of data from the outgoing PBM to the new contractors, which lawmakers said is essential for maintaining continuity of care.
“This move to contract with independent pharmacies is not what’s driving the cost,” Williams said. “You’re not going to save money from moving from one PBM to the other to another. We’re in a situation right now where two things are driving drug prices: that’s inflation on drugs, year over year, there’s a huge inflation rate increasing the price of the drugs. It’s not the PBMs. The drug manufacturers are increasing the price of these drugs. “
