Louisiana Senate Bill 408 was introduced, which proposes the development of a new centralized, state-run workers’ comp medical authorization portal, revises medical authorization, reimbursement, mandatory e-billing, and quarterly data reporting requirements.

Amongst the major changes, beginning January 1, 2027, payors would have to submit quarterly medical and pharmacy claims data to a confidential database maintained by the Louisiana Office of Worker’s Compensation Administration.

The bill would also update the fee schedule and establish reimbursement for professional services at the 75th percentile of a national medical fee directory, tie hospital and ambulatory surgery reimbursement to paid amount data from the claims database, prohibit “by report” billing, and generally cap service code changes at 5% annually.

As for prior authorizations, the bill would require payor responses within 10 business days for specialist referrals and seven business days for surgery, with missed deadlines deemed approved. Additionally, medical providers would be mandated to submit all billing electronically, beginning October 1, 2026. 

The reform package also includes new enforcement mechanisms including civil and administrative penalties for late payment, data reporting failures, and escalating fines for repeat and willful violations.  The bill was introduced on March 17th and was referred to the Labor and Industrial Relations Committee for further consideration.