AP - BATON ROUGE, La. (AP) - A new private contractor is being hired to oversee claims processing and loss prevention services for Louisiana's self-insurance program.
The Office of Risk Management announced Friday that Sedgwick Claims Management Services Inc. was awarded a three-year contract that begins July 1, with an option for a two-year renewal. The cost over five years will be $80 million.
Tennessee-based Sedgwick will take over the work from Mandeville-based F.A. Richard and Associates Inc., or FARA, whose $75 million contract ends June 30.
Gov. Bobby Jindal's administration privatized its risk management division in June 2010.
The legislative auditor said Louisiana saved more than $10 million in the first two years of the privatization deal, rather than doing the work in-house. The administration projects $22 million saved by the end of FARA's contract.