WIN WIN for Workers Compensation Employers and Employees in LOUISIANA

New Louisiana Law Provides Cost Controls and Quality Medical CareThe American Insurance Association (AIA) applauds passage of Louisiana’s SB303 workers’ compensation medical treatment legislation designed to ensure the timely delivery of quality medical treatment to injured workers while controlling rising employer costs. Governor Bobby Jindal is expected to sign the legislation.

The legislation aims to achieve these goals by requiring medical treatments to adhere to a new treatment schedule and such treatments must be in accordance with the principles of evidence-based medicine (EBM).

“Adoption of SB303 will help injured workers receive high quality medical treatment when it’s most needed without bureaucratic delay,” said John Marlow, assistant vice president for AIA’s Southwest Region. “This legislation is a good first step in reforming Louisiana’s workers’ compensation system,” added Marlow. “SB303 represents a common-sense agreement between labor, employers and the medical community as to what’s best for Louisiana’s workers,” said Marlow.

The legislation requires the director of the Office of Workers’ Compensation Administration to establish a medical treatment schedule, in accordance with EBM principles, which the Administration must formally adopt by September 30, 2010.

The director will also be responsible for appointing a medical advisory committee, contract with a medical director in order to oversee the development and mandated bi-annual review of the treatment schedule. “AIA will work with advisory committee members to ensure the new medical treatment schedule adheres to sound evidence-based medicine principles,” said Marlow.

“The committee can also take steps to reduce costs by applying Medicare fee schedules to reimbursements, requiring Medicaid rates be used for pharmaceutical reimbursements, and compelling the utilization of employers’ designated physicians and treatment networks,” added Marlow. (workersxzcompxzkit).

“Louisiana’s workers’ compensation system now has a significant opportunity to advance access to quality treatment while reducing employer costs,” Marlow concluded.

Author: Robert Elliott, J.D.

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Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.