Friday, June 8, 2007

Louisiana Senate Insurance Committee refuses to exempt PPOs from penalties for underpaying Workers' Compensation claims.

The Baton Rouge Advocate reports that the Louisiana Senate Insurance Committee voted 4-2 to scuttle Senate Bill 220, which would have excluded preferred provider organizations from penalties for underpaying worker compensation claims. Four members of the Louisiana Senate Insurance Committee staunchly stood their ground during the heated two-hour hearing before a standing room only crowd of lobbyists.

Chairman James David Cain, R-Dry Creek, said after the hearing that he was forced to put witnesses under penalty of perjury because of “a bunch of nasty lies” spread in radio ads and prerecorded telephone messages aimed at constituents in the districts of four members of the committee. The messages supported SB220.

“It’s about AIG and some insurance companies that got their hand caught in the cookie jar,” said Clark R. Cossé III, general counsel of the Louisiana Hospital Association. “The sky is not falling.”

For the full text and status of Senate Bill 220, visit the Louisiana Legislature's website.