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Committee backs bill preventing insurers from penalizing hospitals over out‑of‑network clinicians
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Summary
HB 291 would bar insurers from penalizing hospitals if a member of a patient's care team is out of network, preserving the No Surprises Act process and independent dispute resolution; hospitals and physician groups supported the preventive measure while Blue Cross warned of cost impacts. The committee reported the bill favorably.
Representative Brock introduced House Bill 291, which would prohibit health plans from applying penalties or administrative reductions to hospitals because an individual member of the care team is out of network. The sponsor framed HB 291 as preventive legislation to stop insurers from pressuring hospitals to force physician groups to accept plan offers by threatening penalties.
Jennifer McMahon of the Louisiana Hospital Association testified in strong support, saying the policy protects hospitals and independent physicians from being squeezed and helps preserve patient access, especially in rural communities. McMahon explained the federal No Surprises Act established that patients pay the in‑network rate and set up an independent dispute resolution (IDR) process for payers and providers. She said plans are now using hospital contracting leverage to circumvent the federal process in some states.
Thomas Groves of Blue Cross Blue Shield Louisiana opposed the bill in part, arguing the IDR process has proven costly in other states and that decoupling hospitals from physician payment negotiations could increase overall costs. He urged the committee to consider fiscal impacts and said plans have product and network management reasons for their contracting approaches.
The committee heard broad stakeholder support (hospital systems, physician societies and rural hospital coalitions) and, after discussion, reported HB 291 favorably with no objections.
Ending: The committee reported HB 291 favorably; sponsors framed the bill as preserving federal patient protections and preventing insurer tactics that could reduce physician participation and access to care.
