BATON ROUGE, La. — On Tuesday, Governor Jeff Landry, appearing in a casual attire with rolled-up sleeves, declared his intention to veto HB423, a bill sponsored by Representative Michael Melerine (R-Shreveport) concerning the Collateral Source Doctrine.
Proponents of the bill assert that it would enhance transparency in legal cases by permitting juries to view both the amount billed by hospitals and the actual payments made by insurance companies. Opponents of the governor’s veto argue that it will result in continued increases in auto insurance premiums.
“Those making these claims are merely repeating what the insurance industry and defense attorneys are saying,” Governor Landry stated during a news conference.
Among the critics are Republican Insurance Commissioner Tim Temple and the Louisiana Association of Business and Industry (LABI), one of the state’s largest lobbying organizations.
“It’s disappointing that the governor chose to side with the status quo and the trial bar instead of supporting a commonsense measure that aligns us with many other states,” remarked LABI CEO Will Green.
At the news conference, Governor Landry was joined by a Shreveport couple involved in an accident with their two children, caused by a truck with faulty brakes. The governor argued that under the current system, the family would receive the benefits they deserved.
“Under the bill I’m vetoing, the insurance company representing the trucking company that almost killed this family would benefit from the discount. How is that fair?” Governor Landry questioned.
Responding to the governor’s remarks, Green stated, “HB423 would have reimbursed plaintiffs for actual medical expenses incurred and allowed juries to award up to 30% additional damages at their discretion.”
Governor Landry highlighted his record of signing 26 tort reform bills within six months, surpassing the number signed by his predecessors in the same timeframe. However, Representative Melerine warned of unintended consequences if the entire package of bills presented by the insurance commissioner is not enacted.
“I cannot speak to the governor’s motivations, but trial lawyers will likely be pleased with this decision,” said Representative Melerine.
In response to the governor’s announcement, Insurance Commissioner Tim Temple expressed disappointment and called for the legislature to convene a special session on insurance as soon as possible.