Proposes amendments to Louisiana's civil procedure laws concerning recoverable medical expenses, jury trial limitations, and evidence admissibility in civil actions.

Key Provisions:

1. Recoverable Medical Expenses:

• The bill seeks to amend R.S. 9:2800.27(B) to limit claimants' recovery of medical expenses to the actual amount paid by health insurance issuers or Medicare, along with any additional amounts the claimant paid or owes, rather than the billed amount.
• It allows claimants to recover 30% of the difference between the billed amount and what insurers or Medicare actually paid, covering procurement costs, subject to adjustments if deemed unreasonable by the court.

1. Jury Trials:

• The bill proposes amendments to Code of Civil Procedure Articles 1732 and 1733(A)(2)(a), limiting jury trials to cases where an individual's claim exceeds $10,000, exclusive of interest and costs.
• It specifies how a petitioner may waive the right to a jury trial by stipulating the claim amount does not exceed the threshold and provides timelines and conditions under which other parties can retain jury trial rights.

1. Admissibility of Evidence:

• In jury trials, only the medical amounts billed are presented to juries; payments made by health insurers or Medicare are excluded.
• Payment details would only be considered by the court after the jury delivers a verdict, preventing juries from being influenced by collateral source payments.

These proposed amendments aim to standardize recovery procedures for medical expenses, clarify jury trial eligibility, and regulate how evidence regarding medical payments is presented during civil litigation.

Senate Bill No. 114, introduced by Senator Jackson-Andrews during the 2025 Regular Session, proposes an amendment to Article 3454 of the Louisiana Civil Code concerning the computation of prescriptive periods. Currently, if the last day of a prescriptive period falls on a legal holiday, the period extends to the next non-holiday. The bill seeks to clarify that this extension also applies when the last day falls on a Saturday or Sunday. If enacted, this change will take effect on August 1, 2025.

Limits the amount recoverable for past medical expenses in civil actions to promote fair and consistent compensation and reduce inflated medical claims.

Key Provisions: 

- Defines "health insurance coverage" to include all major public and private health plans. 

- Defines "usual and customary rate" as 120% of Medicare or 170% of Medicaid, or local provider averages if no public rate applies. 

- Limits recovery of past medical expenses to the lesser of: 

 (1) The amount actually paid to a provider by or on behalf of the claimant; or 

 (2) The usual and customary rate. 

- Applies only to claims not governed by Louisiana’s medical malpractice laws (R.S. 40:1231.1 or 1237.1). 

- Applies prospectively to causes of action filed on or after January 1, 2026.

Purpose: 

Reduces excessive medical billing in civil litigation and aligns recoverable damages with actual market costs.

Limits recoverable medical expenses in motor vehicle accident cases where the claimant is uninsured.

Key Provisions: 

- If a claimant lacks health insurance, recoverable medical costs are capped at: 

 - 120% of the Medicare rate for each service received, or 

 - 170% of the Medicaid rate if no Medicare rate exists. 

- Applies to both past and future medical expenses. 

- Does not alter rules for claims paid by insurance, Medicare, Medicaid, or workers' compensation. 

- Applies prospectively only.

Implications:

Shifts the responsibility for initial medical payments from auto insurers to health insurance providers, potentially reducing auto insurance claim costs and promoting use of existing health coverage.

The House Committee Amendments to HB440 made the following changes to the original bill:

Revised Purpose Language

• Modified the bill's introductory language to focus specifically on "proceedings involving a claimant's failure to mitigate damages with use of personal health insurance."
• Removed broader references to the filing of medical claims.

Deleted Subrogation Provisions

• Stripped out language that would have allowed a claimant's health insurer to subrogate (i.e., seek reimbursement) against the automobile liability insurer.

Changed Reporting Deadline

• Shortened the time period for reporting accident-related injuries to an auto insurer from three years to two years.

Removed Mandatory Use of Health Insurance

• Deleted language that would have required a claimant to first file a medical claim with their private health insurance before seeking damages.

Renumbered Subsections

• Adjusted lettering/numbering to reflect the deletion of subsections (e.g., changed "C.(1)" to "B.(1)").

Overall, the amendments narrowed the scope of the bill to focus solely on creating a rebuttable presumption of failure to mitigate damages when a claimant does not use available health insurance, without mandating health insurance use or allowing insurer subrogation.

Summary: Amends Louisiana law to require injured parties in auto accidents to use their own health insurance before seeking payment from an auto liability insurer.

Key Provisions:

Primary Filing Requirement

• Claimants with private health insurance, Medicare, or Medicaid must first submit medical bills to their own insurer before turning to the auto insurer.

Subrogation Rights

• After paying the medical bills, the health insurer can seek reimbursement from the auto insurer.

Failure to Use Health Insurance – Legal Impact

• If a claimant doesn’t use their health insurance, there is a rebuttable presumption they failed to mitigate damages.
• This presumption can be challenged by showing a reasonable justification (e.g., insurance exclusions or limitations).

Damage Award Reduction

• If the presumption is not rebutted, the court may reduce the damages by the amount that health insurance would have covered.

Scope and Exceptions

• Applies to claims from accidents occurring on or after January 1, 2026.
• Does not apply to medical malpractice cases.

Implications:

Proposes a statutory cap on general damages recoverable under liability insurance policies.

Key Provisions: 

1. Definitions: 

- General damages include non-economic losses like pain, suffering, emotional distress, and loss of companionship. 

- Special damages cover verifiable financial losses such as medical bills, lost income, and property damage.

2. Damage Cap: 

- Limits general damages to a maximum of $5 million per claimant under a liability policy.

3. Jury Consideration: 

- Juries will not be informed of the $5 million cap. 

- Courts must reduce any general damages award exceeding the cap.

4. Scope: 

- Applies only to claims under liability insurance policies. 

- Does not create new causes of action or alter existing definitions of recoverable damages under Louisiana civil law.

Impact: 

This bill aims to control insurance liability exposure and potentially stabilize insurance premiums by capping non-economic damages in liability cases.

Implications:

To restrict forum shopping and ensure that lawsuits are filed in the parish most closely connected to the accident or the defendant.

Summary:

Changes where lawsuits can be filed involving uninsured and underinsured motorist (UM/UIM) insurance policies.

Current Law:

• A person can sue on a UM/UIM policy in the parish where they live or where the accident happened.
• General venue rules allow flexibility in choosing where to file a lawsuit.

Proposed Law:

• If the lawsuit involves the at-fault driver, the case must be filed in the parish where the accident happened or where the defendant (driver) lives.
• If the lawsuit is only against the UM/UIM insurance company, it can still be filed in the parish where the insured person lives.

Key Differences:

• Current law allows UM/UIM lawsuits to be filed where the insured lives, even when suing both the driver and the insurer.
• HB 336 limits that option unless the insurer is the only party being sued.

Limits the amount recoverable by litigation financers to no more than the plaintiffs' share of proceeds after attorney fees and costs are paid. Requires attorneys to disclose litigation financing agreements and provide a copy to clients within 30 days. Exempts nonprofit legal organizations offering pro bono services.

Implictions:

Limits excessive future damage awards by ensuring that funds are used only for documented medical expenses and allowing unspent funds to revert to the insurer.

Summary:

Establishes a legal framework for using a Reversionary Medical Trust in personal injury lawsuits where future medical expenses are expected. Aimed at tort reform and cost control.

Key Provisions:

Definition of Reversionary Medical Trust

• A trust created solely to pay for future medical care and related expenses resulting from a personal injury.

Creation and Administration

• If a defendant is found liable for future medical costs, their insurer can set up a reversionary medical trust.
• The insurer appoints and pays a trustee to manage the trust.
• The injured person sends medical bills to the trustee, who pays the providers directly.

Trustee Responsibilities

• Reviews submitted invoices.
• Prepares vouchers and processes payments.
• Operates under the fiduciary duties defined in the Louisiana Trust Code (R.S. 9:1721 et seq.).

Reversion of Funds

• Any money left in the trust after the injured person dies or the trust ends goes back to the party that funded the trust (usually the insurer).

Attorney Fees

• Injured persons can still hire attorneys and agree to pay legal fees and costs.

Prospective Application

• The law only applies to personal injury cases filed after the effective date of the bill.

HOUSE floor amendments technical

HOUSE committee amendments [LINK] make the required information discoverable. Voids non-disclosures on this provision and requires an officer of the court with knowledge of violations to file a complaint with the Louisiana Attorney Disciplinary Board.

Requires attorneys to disclose to the court if they reasonably expect to earn $1,000 or more in fees from a case, either personally or through a business entity.

Key Provisions: 

- Applies to attorney fees expected to be equal to or exceed $1,000 

- Disclosure must be filed with the court 

- Failure to comply may result in court sanctions 

- Clerk of court must file a complaint with the Louisiana Attorney Disciplinary Board

Effective: Upon enactment 

Citation: Adds R.S. 37:218(C)

HOUSE floor amendment technical

Proposes amendments to the Louisiana Products Liability Act (R.S. 9:2800.53). The key changes are:

1.    Expansion of "Product" Definition: The bill modifies the existing definition of "product" under R.S. 9:2800.53(3) to include "digital products" alongside corporeal movables.

2.    Definition of "Digital Product": A new subsection, R.S. 9:2800.53(10), defines "digital product" as digital applications or games usable on computers, mobile devices, game consoles, or tablets, delivered electronically (e.g., via download, streaming, or online access). It explicitly excludes liability for manufacturers solely hosting third-party content, referencing protections under 47 U.S.C. § 230 (a federal law shielding online platforms from liability for user-generated content).

Extends product liability law to cover digital goods, aligning legal accountability for defective digital products (e.g., apps or games) with that of physical products, while preserving exemptions for platform-hosted content.

This reflects a legislative response to the growing prevalence of digital commerce, aiming to ensure consumer protections apply to virtual goods without overextending liability to internet service providers or platforms.

HOUSE floor amendments technical

Implications: seeks to clarify and enforce the procedural requirements for prisoner lawsuits in Louisiana, emphasizing the necessity of exhausting administrative remedies and outlining the consequences of failing to adhere to these procedures.

Proposes amendments to Louisiana Revised Statute 15:1184(A)(2), which governs the procedures for lawsuits filed by incarcerated individuals. The key provisions of the bill are as follows:

1. Exhaustion of Administrative Remedies: The bill maintains the requirement that prisoners must exhaust all available administrative remedies before asserting a claim under state law. If a prisoner files a suit without fulfilling this requirement, the court is mandated to dismiss the suit. Importantly, the bill specifies that such a dismissal does not interrupt the prescription period (the statute of limitations) for filing the claim.
2. Abandonment of Claims: The bill introduces a provision stating that if a prisoner fails to initiate or pursue administrative remedies within the deadlines established by R.S. 15:1172(B) or LAC 22:I.325, the claim is considered abandoned. Any subsequent suit asserting the same claim will be dismissed with prejudice, meaning the claim cannot be refiled.
3. Ongoing Administrative Remedies: If the administrative remedy process is still ongoing and incomplete at the time a prisoner files a suit, the bill requires the court to dismiss the suit without prejudice, allowing the prisoner to refile once the administrative process is concluded.
4. Peremptory Exception: The bill allows for the failure to exhaust administrative remedies to be raised by a peremptory exception under Code of Civil Procedure Article 927. A peremptory exception is a legal mechanism used to have a case dismissed on specific grounds before it proceeds to trial.