ASA Applauds New Louisiana Law Blocking Insurer Penalties for Out-of-Network Care

Louisiana Governor Jeff Landry signed HB 291 into law, marking an important step to protect hospitals, patients, and physician practices from harmful insurer policies. The legislation addresses insurer practices that reduce or threaten facility payments when out-of-network clinicians participate in care. Under this new law, insurers may not reduce payment or suspend or terminate a facility’s contract solely because another health professional involved in a patient’s care is out-of-network. The Louisiana Society of Anesthesiologists strongly advocated for this measure. 

For anesthesiology practices, this new law is particularly significant. Policies that penalize hospitals for out-of-network anesthesia services can create strong incentives for facilities to require anesthesia groups to join payer networks—even when contract terms are unsustainable. Over time, this dynamic erodes negotiating leverage, threatens practice viability, and can limit patient access to high-quality, anesthesiologist-led care. The new law helps restore balance in contracting relationships and protects clinical decision-making.

Louisiana joins a growing number of states taking action to push back on these types of insurer practices and to preserve fair payment systems that support both facilities and physician groups.

The new law takes effect June 8, 2026.

For more information on ASA’s efforts to address harmful insurance practices, visit ASA’s advocacy resources.