Committee backs bill to bar insurers from penalizing hospitals over out‑of‑network doctors

Representative Berrault presented House Bill 291 as a preventative measure to stop health plans from penalizing hospitals when an out‑of‑network physician provides care. He said plans are using hospital penalties to shift bargaining leverage and warned that could threaten physicians’ willingness to contract with hospitals and reduce access to care.

Jennifer McMahon, representing the Louisiana Hospital Association, testified that the coercive policies the bill seeks to prevent would conflict with the federal No Surprises Act and cited physician shortages and risks to rural access. “This coercive policy directly conflicts with the intent of the Federal No Surprises Act,” McMahon said, urging the committee to support HB 291.

The committee heard from Jeff Draza (Louisiana Association of Health Plans) who cited national analyses showing increased IDR filings since the No Surprises Act, and the fiscal office explained a wide range of possible fiscal impacts — from indeterminable to tens of millions of dollars — depending on behavior by hospitals, physicians and insurers. Department of Insurance staff noted the statute would apply to fully insured plans only and would not bind ERISA, Medicare or Medicaid plans.

After questions and discussion about the fiscal note, committee members moved to report HB 291 favorably and the motion carried without recorded objection; floor consideration and possible dual referral were discussed.