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: 

The bill increases the Department of Insurance’s revenue by raising licensing and renewal fees. These changes will slightly raise costs for insurance professionals and companies operating in Louisiana but will do NOTHING to reduce insurance costs.

Increased operational costs for insurers and adjusters: The higher fees apply to insurance producers, adjusters, and insurers. These are relatively modest increases, but they do add to the cost of doing business.

Possible pass-through to consumers: Companies may choose to offset these added costs by slightly adjusting premiums, fees, or service charges.

Proposes increases to various licensing and regulatory fees collected by the Louisiana Commissioner of Insurance. It targets producers, claims adjusters, public adjusters, and financial regulation fees for certain insurance entities.

Key Provisions: 

- Financial Regulation Fee: Increased from $1,000 to $2,000 annually for health maintenance organizations, insurers, and similar entities. 

- Producers' Licensing Fees: 

 - Application to add lines: $50 → $75 

 - Initial company appointment: $30 → $45 

 - Renewal of individual appointment: $20 → $35 

 - Producer renewal fee standardized at $75 (previously $50–$55 depending on lines) 

- Claims Adjuster and Public Adjuster Fees (Business & Individual): 

 - First-time applicant: $55 → $75 

 - Biannual renewal: $50 → $75 

Proposes amendments to R.S. 56:153, which pertains to the Department of Wildlife and Fisheries' annual duck stamps.

Key provisions of the bill:

• Elimination of Duck Stamp Fees: The bill seeks to remove the fees associated with resident and nonresident duck stamps. Previously, the cost was $5.50 for residents and $25 for nonresidents.
• Retention of the Duck Stamp Program: Despite eliminating the fees, the bill maintains the existing provisions for the creation, marketing, and sale of annual duck stamps and prints. The Department of Wildlife and Fisheries will continue to oversee the selection of artwork and the reproduction of these items. The purchase of these stamps and prints will not confer any hunting privileges.

Rationale behind the bill:

The proposed law aims to remove what is considered an obsolete provision from prior legislation that mandated the purchase of both a hunting license and a stamp for hunting migratory waterfowl. By eliminating the stamp fees, the bill simplifies the regulatory requirements for hunters while preserving the cultural and artistic aspects of the duck stamp program.

Amends R.S. 33:1651(C) to restructure the office of parish secretary-treasurer in Acadia Parish. It replaces the current role with a parish administrator, elected by the parish governing authority for a four-year term. Unlike the present law, where the secretary-treasurer’s term aligns with the governing authority’s, the administrator’s term begins two years into the authority’s term and ends two years into the next term. For the current secretary-treasurer, their term ends two years after its start, with the administrator’s term beginning then, allowing an election beforehand. Vacancies are filled by appointment for the unexpired term.

HOUSE committee amendments [LINK] clarify that certain audiology services must be provided upon physician referral and specify the inclusion of "auditory and vestibular" in the description of neural evaluations. They remove previously proposed language, and clearly define telehealth or telepractice for speech-language pathology or audiology, requiring Louisiana licensure for in-state practitioners and telehealth registration for out-of-state practitioners.

Updates laws on audiology and speech-language pathology in Louisiana.

Key Points:

- Expanded Definitions: Adds terms like telehealth, over-the-counter hearing aids, and ABA/ASHA certifications.

- Scope of Practice: Broadens audiologists' duties to include screenings, hearing aid services, and cerumen management.

- Licensure Changes: Clarifies "good moral character" and allows waivers for ABA-certified applicants. Defines "good moral character" as including, but not limited to, qualities such as honesty, fairness, candor, trustworthiness, observance of fiduciary or legal obligations, and respect for the rights of others and the laws of Louisiana. It also notes that a felony conviction may be considered in this assessment, and any review of criminal history must follow applicable state laws.

- Discipline Updates: Authorizes disciplinary actions for any law violations and allows recovery of attorney fees.

- Administrative: Repeals outdated provisions and updates definitions layout.

The bill modernizes standards, aligns with federal rules, and strengthens regulatory authority.

HOUSE floor amendments [LINK] delay the start of premium tax reductions from 2026 to 2029 and phase them in gradually through 2032 with increasing percentage reductions each year. They cap the tax reduction for 2026–2028 so that no business can claim more than it received in 2024. The amendments also redefine what counts as a "qualifying Louisiana investment," including Louisiana-based bonds, property, loans, stocks, and certain in-state bank deposits. For HMOs to count these investments, they must be domiciled and operating in Louisiana, maintain their corporate office in the state, and keep at least 70% of their employees and core functions in Louisiana. The amendments also revise wording related to how premium taxes apply to surplus lines policies.

HOUSE approps committee amendments [LINK] introduce a gradual reduction mechanism for the insurance premium tax rate beginning July 1, 2027, contingent on exceeding specific revenue thresholds. They also adjust the criteria and calculation method for qualifying Louisiana investments, implementing a phased schedule that gradually increases the payable tax percentages over multiple years. Additionally, the amendments include new reporting requirements and clarify eligibility standards for tax reductions. Starting January 1, 2034, the amendments eliminate these investment-based tax reductions entirely.

HOUSE W&M committee Amendments [LINK] keeps the insurance premium tax credit, tightens rules so only insurers with strong Louisiana presence qualify, defines eligible in-state investments, and sets up automatic tax rate cuts starting in 2027 if collections rise.

Establishes a flat 1.6% insurance premium tax rate and repeals multiple insurance tax credits and exemptions, including the Louisiana Capital Companies Tax Credit Program. Applies to taxable periods beginning January 1, 2026.

Key Provisions:

- Replaces the current tiered insurance premium tax structure with a flat 1.6% tax on gross annual premiums for all applicable insurance types.

- Repeals several tax credits and exemptions, including:

 - The insurance premium investment tax credit (R.S. 22:832)

 - The credit for retaliatory taxes paid by certain domestic insurers (R.S. 22:836(B))

 - The Louisiana Capital Companies Tax Credit Program (R.S. 51:1921–1935)

- Requires insurers to separately state premium and tax amounts on policy declarations.

- Retains local tax exemptions tied to "qualifying Louisiana investments" and standardizes the investment definition across relevant statutes.

- Effective January 1, 2026.