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CAPITOL CORNER |
LMTA's Legislative Overview |
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From LMTA Executive Director Renee Amar
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A Lesson on the Politics of the State Capitol:
This week movement at the Capitol revolved around SB 231 by Senator Reese.
This bill, as filed, addressed medical billing transparency, specifically dealing with collateral sources. It's a key part of the legislative package because it aims to address inflated claims that drive up insurance rates.
What is a collateral source? A collateral source is a source of compensation or benefits an injured party receives independently of the defendant, such as health insurance, workers' compensation, or Medicaid.
Currently, judges or juries are unable to see the actual amounts paid for medical bills, only the amounts charged. In healthcare billing, the initial charge is rarely the final amount owed, due to negotiated rates and various payment arrangements.
With the current rules in place, even if the plaintiff uses health insurance, the judge only sees the charged amounts, not the actual payments made. This is mandated by current law.
If Senator Reese's bill passes and is signed by the governor, judges will be able to see the actual amounts paid, allowing lawyers to present both charged and paid amounts as evidence in cases when health insurance is used.
This is similar to a bill the governor vetoed last year. While a step in the right direction, it may not significantly impact most commercial cases.
Why? The overwhelming majority of commercial cases-90%-are handled on a cash basis. Trial lawyers are bypassing having plaintiffs use health insurance and opting for "cash pay" arrangements. They finance the case and have agreements with certain providers, who inflate medical bills. The attorney then receives a percentage (30-40%) of the inflated bill.
Some of these medical bills are so grossly inflated, the charge has no connection to reality. An MRI in Louisiana might customarily cost $1,000 if you used health insurance, but in a "cash pay" lawsuit, they can cost up to $10,000 or even as high as $40,000. That $40,000 charge would never be paid in any scenario, yet truckers are having to foot these bills in their lawsuits.
This issue wasn't addressed in any bill this session and remains a primary driver of high insurance costs for truckers and anyone with a commercial policy in Louisiana.
Senator Reese's SB 231 is expected to be heard early next week.
WHAT COMES NEXT LMTA remains fully engaged in the legislative process and is committed to continuing the push for responsible civil justice reform. While we celebrate the progress made, we also recognize the critical work that remains.
We will keep fighting to protect the economic viability of Louisiana’s trucking industry and ensure that our legal system promotes fairness—not abuse.
Stay informed. Stay engaged. Stay on the road to reform. |
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