Louisiana Supreme Court Rules – PPO Discounts Don’t Violate LWCA

January 7, 2011

Reversing the decision of the Third Circuit Court of Appeals, the Louisiana Supreme Court ruled that the Louisiana Workers’ Compensation Act (LWCA) does not prohibit Preferred Provider Organizations (PPOs) from applying discounts to workers’ compensation services and reducing the payable benefits to health care providers.  The ruling, made on November 30th, is being labeled as a “test case,” which could have implications for other employers, insurers and health care providers, in the state of Louisiana, and possibly in the entire nation.

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