Louisiana House Bill HB387

Louisiana 2021 Regular Session

• Introduced: 4/1/21
• Refer: 4/1/21
• Refer: 4/12/21
• Report Pass: 4/22/21
• Engrossed: 4/29/21
• Refer: 5/3/21
• Report Pass: 5/12/21
• Enrolled: 5/26/21
• Chaptered: 6/1/21
• Passed: 6/1/21

Caption

Provides relative to network leasing by dental insurers (EN SEE FISC NOTE SG RV See Note)

Impact

If enacted, HB 387 will add provisions to existing laws governing dental network leasing. It mandates that contracting entities must provide providers with written or electronic notifications about any third parties involved in their contracts, as well as comply with other regulations designed to ensure transparency and accountability. The law also sets forth penalties for violations, ensuring that the commissioner of insurance oversees compliance. By doing so, the bill aims to create a more orderly process for managing dental network contracts, particularly concerning third-party relationships.

Summary

House Bill 387, known as the Network Leasing Act, seeks to enhance contractual transparency between dental carriers, dentists, and third parties. The bill establishes clear definitions of key terms such as 'contracting entity', 'dental carrier', 'third party', and 'provider network contract'. It intends to regulate how these entities can share access to provider network contracts, thereby focusing on contractual clarity and consumer protection in the dental insurance market. The legislation is seen as a significant step towards addressing issues of transparency in network leasing procedures, allowing stakeholders to better understand their rights and responsibilities.

Sentiment

The sentiment around HB 387 appears generally supportive among stakeholders who advocate for enhanced transparency and regulatory clarity in the dental insurance market. Proponents argue that the bill will protect providers and consumers alike, reducing the potential for exploitative practices. However, there may be concerns regarding the operational impact on dental carriers and how they adjust to the new regulatory requirements. Overall, the reception among legislators seems positive, as indicated by the voting record, with no nays reported during its passage.

Contention

One notable point of contention lies in the degree of control that dental providers have over their contracts with third parties. While the bill allows providers to opt out of participating in third-party access, critics might raise concerns about whether this genuinely empowers them or whether it imposes additional burdens. Furthermore, the requirement that contracting entities must update stakeholders about third-party relationships could be seen as an administrative challenge. Balancing transparency with operational feasibility may emerge as a key debate as the bill is considered in detail.