GREEN SHEET REDIGEST
HB 44 2020 First Extraordinary Session Garofalo
INSURANCE/AUTOMOBILE: Enacts the Omnibus Premium Reduction Act of 2020.
(Item #40)
DIGEST
Proposed law (R.S. 9:2800.27) provides for definitions:
(1)"Health insurance issuer" means a health insurance coverage through a policy or
certificate of insurance subject to regulation of insurance under state law, health
maintenance organization, employer sponsored health plan, the office of group
benefits, and an equivalent federal or state health plan.
(2)"Medical provider" means any health care provider, hospital, ambulance service, or
their heirs or assignees.
(3)"Cost sharing" means copayments, coinsurance, deductibles, and any other amounts
which have been paid or are owed by the plaintiff.
Proposed law provides that when a plaintiff's medical expenses have been paid by a health
insurance company or Medicare, plaintiff's recovery of medical expenses is limited to the
amount actually paid to the health care provider by the insurer or Medicare, and not the
amount billed.
Proposed law provides that in cases where a plaintiff's medical expenses are paid pursuant
to the La. Workers' Compensation Law, the plaintiff's recovery of medical expenses is
limited to the amount payable under the medical payments fee schedule of the La. Workers'
Compensation Law.
Proposed law provides that the provisions of proposed law shall become effective on Jan. 1,
2021, and shall have prospective application only and shall not apply to a cause of action
arising or action pending prior to Jan. 1, 2021.
(Adds 9:2800.27)
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Make technical changes.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary A to the
reengrossed bill
1. Removes provisions relative to prescription periods, jury trial thresholds, and
direct actions against insurers.
2. Removes provisions relative to premium rates and reductions.
Page 1 of 1
Prepared by Margaret M. Corley.