Louisiana House Bill HB190

Louisiana 2023 Regular Session

• Introduced: 3/24/23
• Refer: 3/24/23
• Refer: 4/10/23

Caption

Provides relative to employee benefit plans preempted by the Employee Retirement Income Security Act of 1974

Impact

The proposed modifications aim to create a clearer framework within which employee benefit plans can operate under state law without conflicting with federal regulations. If enacted, HB 190 would ensure that the Louisiana Insurance Code explicitly recognizes the limits of state jurisdiction in cases where ERISA governs. This development is important for local businesses and insurers as it aims to safeguard the integrity of state insurance regulations while not overstepping into areas regulated federally, potentially providing more stability in compliance for health plans under Louisiana's jurisdiction.

Summary

House Bill 190, introduced by Representative Hollis, seeks to amend provisions within the Louisiana Insurance Code related to health insurance issuers and employee benefit plans, specifically addressing preemption by the federal Employee Retirement Income Security Act of 1974 (ERISA). The bill modifies the definitions and exact applicability of insurance laws concerning health insurance issuers, establishing that these laws should apply only to the extent that they are not preempted by ERISA. This change is intended to clarify the relationship between state law and federally regulated employee benefit plans, ensuring that state regulations do not conflict with federal standards.

Sentiment

The reception of HB 190 appears to be generally supportive among those who advocate for regulatory clarity in the interaction between state and federal laws. Proponents argue that by delineating the boundaries of state authority versus federal preemption, the bill helps foster a more predictable insurance landscape. However, critics may express concerns that such amendments could lead to inconsistency in insurance coverage or weaken the protections available to employees under state law, emphasizing the need for careful consideration in balancing state and federal responsibilities.

Contention

Key points of contention surrounding HB 190 include the potential for either adequate or inadequate consumer protections in the insurance market, contingent upon the effectiveness of the delineated boundaries between state and federal oversight. Opponents may highlight that the bill could inadvertently limit how Louisiana addresses unique health needs in its insurance market, should ERISA's preemption create gaps in coverage for specific local circumstances. The debate underscores an ongoing tension between ensuring comprehensive local insurance governance and adhering to overarching federal regulations.