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Major Workers’ Comp Reforms Remain Labor Focal Point in Both Chambers
Workers’ comp reform has remained the dominant topic in both labor committees this session—and that focus shows no signs of letting up. While neither House Labor nor Senate Labor agendas have been published yet, we have a clear sense of the measures likely to be heard. We’ll break down the full slate in the days ahead, but for now, here are two key pieces of legislation we’re tracking that address longstanding WC obstacles.
SB 408 by Sen. Brach Myers (R-Lafayette) represents a serious effort to bring balance and modernization to Louisiana’s outdated WC medical fee schedule. The current structure hasn’t been meaningfully updated in decades, creating confusion that delays payments and adds unnecessary costs throughout the system. Those inefficiencies are reflected in the data: according to the National Council on Compensation Insurance (NCCI) and the Workers Compensation Research Institute (WCRI), Louisiana ranks among the most expensive states for workers’ compensation claims, with the eighth-highest premiums in the country, all while being regarded as one of the safest.
While physician reimbursement rates have remained largely stagnant, certain outlier facilities have more than offset that gap—charging employers many times what commercial health insurers typically pay. The result is a system where Louisiana has the highest medical claim costs in the south and ranks among the highest nationwide.
While concerns remain around reimbursement methods and payment amounts, Sen. Myers has committed to working with all stakeholders to address their issues. LABI appreciates his genuine and deliberate work to finally fix this colossal problem. LABI will stay actively engaged, working to refine the proposal and advance a more fair, predictable and transparent system.
In House Labor, the Committee is expected to hear HB 1101 by Rep. Michael Melerine (R-Shreveport). The bill takes aim at a major cost driver in Louisiana’s WC system—indemnity benefits that far exceed regional norms. According to NCCI, Louisiana employers pay roughly twice as much in workers’ comp indemnity benefits compared to their counterparts in neighboring southern states. That disparity not only strains employers but also sends the wrong signal to businesses considering where to invest and grow.
HB 1101 offers a direct, targeted solution. The bill would cap temporary total disability benefits at “maximum medical improvement,” as defined by federal regulations, or at three years. It also strengthens anti-fraud provisions, reduces the eligibility window for wage replacement benefits from 10 years to eight, and reinforces the role of vocational rehabilitation in helping injured workers return to the workforce.
Together, these changes would restore balance to the system—ensuring workers’ comp functions as a safety net for recovery and return to work, not a long-term substitute for employment or a magnet for excessive litigation.