Provides relative to the collection of workers' compensation premiums (EN SEE FISC NOTE SG EX See Note)
Summary
HB 280 amends Louisiana Revised Statute 23:1172.3 to change when and how workers’ compensation insurers may collect additional premiums after a premium or payroll audit. The bill generally bars an insurer from recovering past-due workers’ compensation premiums based on employee misclassification discovered in an audit unless the insurer gives the insured written notice within 90 days after completion of the audit, using certified mail, commercial courier, or electronic transmission. It also states that if an insurer conducts a payroll audit, that audit itself serves as notice, and the insurer is then prohibited from collecting additional premiums from the insured under that subsection.
The bill further limits insurers from modifying or completing a payroll premium audit more than three years after the end of the policy period, while carving out exceptions for misrepresentation or omission of relevant information, insured noncompliance, disputed audits, fraud investigations, and court-ordered reclassification. It also clarifies that insurers may return premiums to an insured if a completed audit shows the insured is entitled to a refund, and it excludes self-insurance funds from the statute. The act takes effect upon gubernatorial signature or otherwise under the normal constitutional process for enactment.
Impact
HB 280 directly amends the state’s workers’ compensation premium audit and collection rules in R.S. 23:1172.3, tightening deadlines for insurers to pursue additional premiums and adding notice requirements before collection can occur. It affects workers’ compensation insurers and insured employers by limiting retroactive premium assessments, while preserving exceptions for fraud, disputes, and inaccurate information. Self-insurance funds are expressly exempted, so the changes apply to standard workers’ compensation insurers rather than self-insured arrangements.
Sentiment
The bill appears to have received generally favorable legislative support, passing both chambers with clear majorities. The House approved final passage 74-22, and the Senate approved final passage 27-11, indicating meaningful but not unanimous support. The vote pattern suggests broad agreement with the bill’s consumer- or employer-protective limits on late premium collection, alongside some concern about restricting insurers’ ability to recover premiums after audits.
Contention
The main point of contention is the balance between protecting insured employers from delayed or unexpected premium bills and preserving insurers’ ability to correct misclassifications and collect premiums owed after audits. Opponents likely focused on the bill’s limits on retroactive collection and the three-year cutoff, while supporters likely emphasized notice, finality, and fairness in audit practices. The exceptions for fraud, disputes, and misrepresentation indicate an effort to address insurer concerns without weakening the bill’s core restrictions.