HLS 17RS-838 ORIGINAL
2017 Regular Session
HOUSE BILL NO. 428
BY REPRESENTATIVE PUGH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE/HEALTH: Provides for unfair trade practices by insurers and pharmacy
benefit managers
1 AN ACT
2To enact R.S. 22:1964(29), relative to unfair trade practices by insurers and pharmacy
3 benefit managers; to define certain contractual provisions as an unfair trade practice;
4 to provide taking adverse action for certain statements and activities is an unfair
5 trade practice; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 22:1964(29) is hereby enacted to read as follows:
8 ยง1964. Methods, acts, and practices which are defined as unfair or deceptive
9 The following are declared to be unfair methods of competition and unfair
10 or deceptive acts or practices in the business of insurance:
11 * * *
12 (29) Taking adverse action against a healthcare provider by an insurer or
13 pharmacy benefit manager for the following actions by the healthcare provider:
14 (a) Discussing any healthcare issue or healthcare cost issue with a patient or
15 the public.
16 (b) Disclosing a practice by the insurer or pharmacy benefit manager that is
17 in violation of state law.
18 (c) Providing information to or testifying before any public body conducting
19 an investigation, hearing, or inquiry into any violation of law.
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-838 ORIGINAL
HB NO. 428
1 (d) Objecting or refusing to participate in a practice that is in violation of law
2 or causes the provider financial loss.
3 (e) Participating in the political process.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 428 Original 2017 Regular Session Pugh
Abstract: Classifies as an unfair trade practice taking adverse actions against a healthcare
provider for certain activities by the provider.
Present law classifies certain practices of insurers or producers as unfair trade practices and
authorizes the commissioner of insurance to investigate these practices and take certain
actions when a he determines a violation has occurred.
Proposed law classifies as an unfair trade practice the taking of adverse action against a
healthcare provider by an insurer or pharmacy benefit manager for the following:
(1) Discussing any healthcare or healthcare cost issue with a patient or the public.
(2) Disclosing a practice by the insurer or pharmacy benefit manager that is in violation of
state law.
(3) Providing information to or testifying before any public body conducting an
investigation, hearing, or inquiry into any violation of law.
(4) Objecting to or refusing to participate in a practice that is a violation of law or causes the
provider financial loss.
(5) Participating in the political process.
(Adds R.S. 22:1964(29))
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.