Urge Louisiana Lawmakers to Pass Legal System Abuse Reforms
Despite some limited reforms, the Louisiana insurance market is still extremely challenging for consumers, local businesses, and insurers. Legal system abuse continues to worsen the situation by driving up the cost of insurance and imposing a “tort tax” on all Louisianans.
Fortunately, lawmakers in Baton Rouge are considering a range of bills that would help curb legal system abuse and help keep costs down for Louisiana consumers and policyholders.
Rampant legal system abuse leads to inflated claims payments and awards that drive up insurance costs. In fact, all taxpayers pay a hefty price for unchecked legal system abuse. According to the Institute for Legal Reform, Louisiana residents pay an annual tort tax of $4,389 per household. The American Tort Reform Foundation also reports that Louisiana loses more than 40,500 jobs each year because of legal system abuse.
Lawmakers are currently considering a range of bills that would help tackle legal system abuse reform, including:
HB 34 would allow full evidence and expert testimony on medical expenses, repeals the 40% cap, and lets courts consider provider-third party agreements.
SB 230 would provide that the payment of claims for past health care service expenses, if paid through health insurance coverage, shall be limited to the health issuer's liability.
HB 427 would allow for the creation of a reversionary trust for payment of future medical and related expenses.
HB 431 would prohibit recovery if fault is equal or more than 50%; if less than 50% at fault, then damages shall be proportional.
HB 434 would prohibit recovery for the first $100,000 of both bodily injury and property damage for such injury or damages if the party doesn’t have insurance.
HB 435 would set a cap on general damages at $5 million.
HB 450 would overrule the presumption that an auto accident is the cause of a claimant’s injuries, which is unique to Louisiana.
HB 430 would place various limitations on attorney advertising and prohibit direct solicitation for 30 days after a personal injury.
HB 432 reinforces 2024 reforms by strengthening oversight and transparency in third-party litigation funding.