The idea faces opposition from some lawmakers, who would have to approve parts of the privatization, and current and retired state employees who worry their health benefits might be cut and their premiums increased.

The haggling between Purpera's office and the governor's top budget office, the Division of Administration, is a legal one.

Among the documents sought by the auditor's office are those related to the work being done by Chaffe & Associates Inc., a New Orleans-based company hired by the Division of Administration to help determine the fair market value of the health insurance program.

Commissioner of Administration Paul Rainwater said his office has provided all financial records sought by Purpera, but he said others requested, including those involving Chaffe, are shielded from review under an exemption given to the governor for records involving "deliberative process." He said the Chaffe report will be released when it's complete.

Purpera said another area of the law gives the auditor the ability to review confidential documents, like health care records.

"Routinely, we collect data that may not be subject to public records law," he said.

The Division of Administration is seeking a financial adviser to help it determine the worth of the health insurance program and the structure of a health insurance program sale.

The governor said privatization would cut the 300-employee group benefits office in half and generate $10 million in annual savings for the state, in addition to an upfront, lump sum payment that could top $150 million. The governor's 2011-12 budget proposal anticipates the annual savings, but it doesn't include the use of any one-time money generated by the sale.

Critics of Jindal's plan say the Office of Group Benefits runs its insurance programs with low administrative costs and call the privatization plan a bid to raid the more than $500 million trust fund filled with premiums paid by covered employees. They've questioned a private company with a profit motivation would keep state costs at the same rate.

It's unclear how the $500 million trust fund would be handled in any privatization effort.

The Office of Group Benefits provides health insurance and life insurance to more than 148,000 current state workers and retirees and more than 107,000 of their dependents. Some of the insurance plans already are run by private companies. The privatization proposal from the Jindal administration would affect about 62,000 employees, retirees and their dependents.