Privatization of Louisiana Risk Management Office Saves $16M

A new audit says Louisiana has saved nearly $16 million in the first three years of a privatization contract for the Office of Risk Management, the state’s self-insurance agency.

Gov. Bobby Jindal’s administration hired Mandeville-based F.A. Richard and Associates in June 2010 to take over much of the Office of Risk Management’s workload. The administration projected it would save $22 million over the life of the five-year, $75 million contract.

In a report released Monday, Legislative Auditor Daryl Purpera’s office says the state has reached 72 percent of the promised savings through the close of the 2013 budget year.

Agencies pay premiums to the Office of Risk Management for lines of insurance covering medical malpractice, worker’s compensation cases, property damage and road hazards.