Patrick Robinson from the Louisiana Association of Business and Industry (LABI) joins the show to discuss the urgent need to update Louisiana’s outdated workers’ compensation (comp) medical fee schedule, which hasn’t been revised in 30 years. Louisiana employers currently pay around $1 billion annually in workers’ comp premiums—among the highest in the U.S. Robinson emphasized that aligning premiums with national averages could return $300–$400 million to the business community, boosting wages and lowering costs.
The core issue is the outdated and unclear fee schedule, which leads to confusion, underpayment, and excessive litigation. A proposed solution, Senate Bill 213 by Senator Sebaugh, aimed to modernize the fee schedule starting in 2027. However, the bill faced strong opposition from stakeholders and was not heard in the current session. A similar bill by Representative Michael Echols passed the House but may encounter the same resistance in the Senate.Robinson highlighted that vague reimbursement language—such as percentages of billed charges—creates uncertainty and legal disputes. He noted that over 40 states manage this better, often tying reimbursements to Medicare rates.
However, some healthcare providers oppose this due to Medicare’s budget-driven fluctuations.The conversation also touched on the “jackpot mentality” in workers’ comp, where some individuals exploit the system for prolonged benefits. This, combined with high premiums, deters businesses from relocating to Louisiana. Robinson stressed the need for cultural change and public education to shift perceptions about workers’ comp’s purpose.Despite legislative setbacks, Robinson remains hopeful. He praised the Louisiana Workforce Commission for its efforts and believes incremental improvements can still be made under current law. Ultimately, he urged continued collaboration to create a fair, efficient system that supports both workers and businesses.