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Senate panel backs bill to bar hospital penalties tied to out-of-network doctors after fiscal debate
Summary
The Senate Finance Committee on May 18 adopted HB 291 to prevent health plans from imposing hospital payment penalties when an out‑of‑network physician provides care, adopting an amendment exempting the Office of Group Benefits and asking OGB to track impacts over the next year.
The Senate Finance Committee on May 18 voted to report HB 291 — legislation that would bar health plans from imposing punitive payment reductions on hospitals when an out‑of‑network physician provides care as part of a hospital visit.
Jennifer McMahon, representing the Louisiana Hospital Association, told the committee the bill is preventive, intended to stop a coercive policy that would pressure hospitals to force physicians into network contracts. “This policy directly conflicts with Congress’s intent in the No Surprises Act,” McMahon said, urging the panel to move the measure out of committee so the full Senate can consider it.
Supporters and opponents sparred over the bill’s fiscal note. Office of Group Benefits (OGB) witnesses said independent dispute resolution (IDR) use has risen nationally and that any resulting “network leakage” could increase costs OGB pays. Heath Williams of OGB said the fiscal-note ranges are estimates and pledged that OGB will track provider network changes and IDR claims if the bill becomes law: “If this passes, next year I’ll probably be back here and say this is exactly what we think the cost was.”
Lawmakers pressed both sides for clearer state‑level data. Sen. Cloud and others questioned large fiscal‑note ranges and urged caution before accepting high-end estimates; hospital representatives countered that the notes sometimes reflect industry submissions and can overstate impacts. OGB and the department staff said they have revised their estimates after discussion with stakeholders and acknowledged uncertainty in projecting how many providers might leave networks.
Given those concerns, the committee adopted amendment 39 41, which removes OGB from the bill’s provisions. Sponsor and members also requested a formal follow‑up from OGB: the agency committed to return with an accounting of IDR claims, network counts and the dollar volume of related claims so the Legislature can assess actual impact.
After extended debate on the fiscal note and oversight language, the committee voted to report HB 291 favorable as amended.
What’s next: The bill will be placed on the Senate calendar; OGB agreed to return with measurable data next session to show whether the law produced increased IDR use or network changes.
