Proposed Work Comp Changes in Louisiana
Everyone that has operated a Workers’ Compensation PPO in Louisiana knows what a nightmare this state has been recently. I talked to one PPO back in the summer that indicated they had close to 1 billion dollars in exposure for penalties associated with PPO discounts taken where ID cards had not been used. Of course, using an ID card for workers’ compensation is just almost impossible. Most workers’ compensation PPOs simply chose to quit doing business in the state. Now, with new Republican Gov. Bobby Jindal, the thought is that workers compensation can be revisited in the state. In a recent article from Louisiana Medical News (see quote below), there is new hope for LA.
“Sharma says that LWCR, which represents 250 large employers and hospitals and close to 1 million workers, is taking a comprehensive approach to changing the workers’ comp system. Sharma said he is confident that changes will be made by the legislature.
The group has recommended lowering compensation costs, changing the dispute resolution process to promote consistency and efficiency, and creating quality medical provider networks to treat injured workers.”
Thus, any changes to allow PPOs to operate effectively in the state again will help to lower medical costs. This just might solve some of LAs problems such as Louisiana employers have the longest temporary disability duration rate, 40 percent higher than the median, and pay more than the national average in workers’ compensation costs, with higher premiums.
December 10th, 2007 at 11:57 am
The LA Legislature and employers in LA seem to be missing the boat here. This undeclared ban by PPO networks for access of network related providers and related discounts in their state can’t be good for business. It’s gone on for awhile now. The proposed workers’ compensation changes mentioned by the LA legislature would be welcomed warmly by their employers and those trying to do business in LA.
It seems to me that nobody wins here. The employers don’t win because they don’t gain the savings value that the provider discount provides. The insurance carrier, administrator or self-insured employers don’t win because they don’t gain additional savings -which by the way relates directly to their workers’ compensation costs being higher and thus paying higher premiums.
The injured worker may or may not win because who’s watching the provider in terms of the treatment rendered? Just a nurse case manager, maybe. But not another network provider related professional or organization.
I just don’t see anyone winning, just a collective few reaping financial benefit from lawsuits and creating further damage to the LA marketplace regarding providers and plan entities like PPO’s.
LA should take notice and create legislation that proactive and truly helpful for healthcare network companies and others, providers and employers working hard to do business in LA . Medical Cards are challenging and have not proved themselves in the workers compensation arena in other states in the past. I do hope that the LA Legislature and their new governor take a look at what has gone on here and move to toward change. Then LA employers, carriers and others can once again enjoy lowering workers compensation costs.
December 20th, 2007 at 4:55 pm
Ultimately, it will be the remaining political infrastructure in LA that will “solve” this problem. It simply cannot be tolerated to let the legal elite reap the gains from an ill-gotten law that sat on the books for too many years before being enforced. Such tactics only serve to benefit the attorneys.
LA is a state still in disrepair; still attracting back the population that lived there, trying to re-establish its culture and roots. In the process, trying to move back in the healthcare community that was displaced or near-bankrupted by Katrina and the loss of citizenry to treat.
LA’s legislature would do well to make the environment open and hospitable to business of all types, and put into place some regulatory guidance that will make workers compensation coverage easy to attain, affordable to maintain, and fair for all workers in the state. This attracts industry and business to their state.
November 12th, 2008 at 3:10 pm
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