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Workers’ Comp Fee Schedule Modernization Takes Its First Step in the House
Less than a week after clearing the upper chamber, SB 408 by Sen. Brach Myers (R-Lafayette) headlines Wednesday’s House Labor meeting. As we’ve previously noted, LABI has been intricately involved in discussions surrounding this bill for weeks, working with Sen. Myers, members and workers’ compensation stakeholders trying to reach consensus. What we do know: an update of the state’s current medical reimbursement fee schedule is long overdue and without desperately needed revisions, we cannot bring stability and predictability to the system.
When the bill debuted in Senate Labor nearly a month ago, LABI supported it in Committee in the spirit of continuing this critical conversation and addressing multiple outstanding issues. Since that time, LABI has not taken a position on the measure, as it cleared Senate Finance and, ultimately, the Senate Floor.
The bill proposes major updates to the state’s outdated medical fee schedule, including modernized utilization review and billing processes and increased reimbursement for healthcare providers. LABI agrees physician reimbursement needs attention, but the proposal would dramatically raise professional fees—potentially tripling or more—at a time when Louisiana employers already shoulder some of the nation’s highest workers’ comp premiums. The business community emphasizes that higher medical costs must be paired with reforms to reduce indemnity and litigation expenses.
National data reinforces both the urgency and the opportunity to improve Louisiana’s workers’ comp framework. With the eighth-highest premiums in the country and medical claim costs ranking among the highest in the South—even while the state maintains one of the strongest safety records—the need for greater predictability, transparency and balance in medical reimbursement is clear.
We look forward to a productive dialogue and to collaborating on thoughtful amendments that ensure the final legislation works for employers, providers and injured workers alike.
As a reminder, three additional measures aimed at strengthening and modernizing Louisiana’s workers’ compensation system—one that no longer aligns with current standards—are currently awaiting hearing dates in the Senate. Those bills include:
- HB 456 by Rep. Emily Chenevert (R-Baton Rouge) restores employers’ ability to petition the Office of Workers’ Compensation to resolve disputes while continuing benefits, promoting fairness and reducing the risk of excessive penalties and litigation costs.
- HB 780 by Rep. Gabe Firment (R-Pollock) aims to curb Louisiana’s high litigation costs by applying a uniform standard for punitive attorney fees and reviving expedited administrative review to resolve disputes faster.
- HB 1101 by Rep. Michael Melerine (R-Shreveport) works to bring Louisiana’s high indemnity costs closer to neighboring states by clarifying limits on temporary disability benefits, strengthening fraud protections, improving return-to-work efforts and maintaining support for injured workers without impacting healthcare delivery.
LABI has been very clear that these measures, which would amount to the largest WC reform in decades, deserve to be heard and are critical to creating a fair system that works as intended: supporting injured employees in recovering and reentering the workforce as quickly and safely as possible.