Jeff Landry Signs Collateral‑Source Transparency Bill: Businesses Applaud, Trial Lawyers Cry Foul

Governor Jeff Landry officially signed legislation reforming Louisiana’s collateral source rule, a move welcomed by businesses and consumers, but sharply criticized by trial attorneys. The law mandates transparency in injury cases, allowing juries to see both what hospitals bill and what insurance providers actually pay.

Business leaders and the state’s insurance industry argue the reform will curb inflated claims and help stabilize Louisiana’s runaway auto‑insurance premiums. “This brings us in line with states like Texas,” one lobbyist said, stressing the urgency for clearer billing practices .

In contrast, trial lawyers and legal advocacy groups warn the law undermines injured plaintiffs’ rights. They argue it would limit jury discretion and could leave vulnerable victims with unrecovered medical costs. Critics also contend it strengthens insurance companies at the expense of everyday

Governor Landry, aligning with broader tort‑reform goals, highlighted the need to hold both insurance firms and trial attorneys accountable in battling Louisiana’s insurance crisis. He asserted that aggressive legal advertising and opaque billing practices distort the justice system

In Context

• Shared blame: In April, Landry blamed both “little boys crying wolf” — insurers and trial lawyers — for driving up premiums lailluminator.com.

• The bill joins a suite of tort‑reform measures he’s enacted since April, part of a broader campaign to tame Louisiana’s notoriously high insurance rates gov.louisiana.gov.

  
  

What’s next?

Opponents are expected to challenge the law in court or push for repeals. Meanwhile, insurance regulators are gearing up to study premium impacts, anticipating that greater billing clarity could help slow rising costs for consumers.