SSHB616 3264 4809
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 616 2024 Regular Session Green
INSURANCE/HEALTH: Provides relative to actuarial reviews of healthcare legislation
Synopsis of Senate Amendments
1.Changes the date from Dec. 1, 2024 to Feb. 1, 2025, regarding the La. Dept. of
Insurance's required date to contract with entities to conduct actuarial reviews.
2.Removes the requirement for the La. Dept. of Insurance to conduct a meeting
for public input.
3.Changes the timeframe for a contractor's predicted effects of a legislative
proposal from the 5 years to the first year immediately following the proposal's
effective date.
4.Makes technical changes.
Digest of Bill as Finally Passed by Senate
Proposed law requires the La. Dept. of Insurance (LDI) to implement a process for legislators
to request actuarial reviews of healthcare legislation.
By Feb. 1, 2025, proposed law requires LDI to contract with one or more entities with
experience in actuarial reviews and healthcare policy for the purpose of performing the
actuarial reviews. Requires at least one contractor to be an actuary, actuarial firm, university
department, or academic faculty based in the state of La. with experience analyzing health
insurance premiums. Further requires contractors to be independent and free from conflicts
of interest.
Proposed law requires legislators requesting actuarial reviews of legislative proposals to
submit requests to LDI no later than Dec. 1st of the year preceding the regular session of the
legislature in which the legislative proposal will be introduced.
Proposed law requires contractors to consider in actuarial reviews the predicted effects of the
legislative proposal during the year immediately following the effective date of the proposal,
or during another time period if such consideration is more actuarially feasible.
Proposed law requires contractors to provide certain information regarding actuarial reviews
including but not limited to enrollment estimates of health benefit plans and certain
desegregated demographic information.
Proposed law provides for qualitative analysis of the impact of legislative proposals.
Authorizes a legislator who requests an actuarial review to designate one or more persons
to provide data to contractors to inform a qualitative analysis. Further authorizes contractors
performing legislative reviews to use data from any reasonable source, including data
collected from insurers, and requires such insurers to provide requested information.
Proposed law provides that reports of actuarial reviews are confidential until the legislative
proposal is introduced in the following regular legislative session or, if no proposal is
introduced, until after the end of the legislative session following the submission of the
request.
Proposed law requires LDI to provide written notification to the commissioner of
administration and the chairmen of the House Appropriations Committee and Senate Finance
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Committee of the estimated defrayal costs of a state benefit mandate. Upon receipt of the
written notification, proposed law requires the commissioner of administration to request an
appropriation to pay the estimated defrayal cost of each enacted legislative proposal prior to
implementation in the subsequent plan year.
Proposed law requires insurers to provide actuarial estimates, based on appropriate claims
and data of the per-member, per-month amount necessary to defray the cost of the enacted
mandate for the subsequent plan year. Further requires estimates to be actuarially sound.
Proposed law requires data and other records disclosed by a health insurer, health plan, or
other health insurance issuer pursuant to proposed law to be kept confidential.
Proposed law does not delegate state or federal authority to a non-state entity contractor,
including authority to request fiscal impact analyses from the legislative fiscal office, or the
authority to make determinations regarding the legal status of state benefit mandates.
Proposed law prohibits LDI from engaging a contractor to perform an actuarial review unless
LDI determines that there are adequate resources within existing appropriations to
compensate the contractor.
Present law provides for the La. Mandated Health Benefits Commission. Proposed law
repeals present law and authorizes the La. State Law Institute to redesignate proposed law.
(Adds R.S. 22:2188; Repeals R.S. 22:2187)
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