Everyone that has operated a Workers’ Compensation PPO in Louisiana knows what a nightmare this state has been recently. I talked to one PPO back in the summer that indicated they had close to 1 billion dollars in exposure for penalties associated with PPO discounts taken where ID cards had not been used. Of course, using an ID card for workers’ compensation is just almost impossible. Most workers’ compensation PPOs simply chose to quit doing business in the state. Now, with new Republican Gov. Bobby Jindal, the thought is that workers compensation can be revisited in the state. In a recent article from Louisiana Medical News (see quote below), there is new hope for LA.

“Sharma says that LWCR, which represents 250 large employers and hospitals and close to 1 million workers, is taking a comprehensive approach to changing the workers’ comp system. Sharma said he is confident that changes will be made by the legislature.

The group has recommended lowering compensation costs, changing the dispute resolution process to promote consistency and efficiency, and creating quality medical provider networks to treat injured workers.”

Thus, any changes to allow PPOs to operate effectively in the state again will help to lower medical costs. This just might solve some of LAs problems such as Louisiana employers have the longest temporary disability duration rate, 40 percent higher than the median, and pay more than the national average in workers’ compensation costs, with higher premiums.