Louisiana Senate Bill 408 was signed into law, establishing mandatory medical data reporting for payors to a new statewide medical bill database, which will be the foundation for a future data-driven workers’ comp fee schedule. The database will also serve to inform future changes to billing, payment, authorization, and dispute processes.
While this bill takes effect upon enactment, there are phased implementation timelines for key operational changes through 2029. Requirements for data reporting and electronic billing begin in 2027, while the billing dispute process and fee schedule rulemaking will be deferred until 2029. Notably, several reimbursement, payment, and prior authorization provisions will only take effect if the legislature approves the updated fee schedule.
Beginning January 1, 2027, insurers will be required to submit detailed medical payment data on a quarterly basis to the Office of Workers’ Compensation Administration (OWCA). The format and timing of the data reporting is not prescribed in the bill, and will be determined in a format, time, and manner prescribed by the OWCA.
In addition, beginning July 1, 2027, electronic submission of all medical bills becomes mandatory, with additional standards for claim processing, review, and exception reporting. Payment of complete electronic medical bills is required within 30 days and failure pay timely may result in fines and interest. The new law also requires prior authorization requests within five business days and deems certain non-surgical services approved if no denial is issued within that timeframe.
The medical payment data collected by the OWCA will populate a new “All Workers’ Compensation Medical Bill Database.” The data collected will be used by the OWCA for utilization analysis, enforcement, and fee schedule policy development. Additionally, the bill authorizes the OWCA to conduct audits, data validation, and penalties for noncompliance.
The OWCA must submit an informational report to the legislature no later than 30 days prior to the 2029 Regular Session to inform future fee schedule development. For now, the current fee schedule remains in place. The OWCA assistant secretary must begin rulemaking by July 1, 2029, to develop a data-driven fee schedule using database data; any changes must be approved by both the legislature and the governor.
This bill was widely debated and was the only workers’ compensation bill passed from the larger package of reforms considered this year. One of the failed bills would have implemented new treatment guidelines but failed to advance despite gaining momentum late in the session.
Healthesystems will remain actively engaged with OWCA rulemaking and implementation discussions. As reporting specifications take shape, we will prepare to support customer compliance and operational readiness.
