Louisiana Senate Bill 231 changes how medical bills are counted in personal injury cases. This new law starts on January 1, 2026. It affects injury cases across Baton Rouge, New Orleans, Lafayette, Lake Charles, Shreveport, and all of Louisiana.
What Is Changing?
Right now, courts can look at the full medical bill amount. This is the amount the hospital or doctor first charges. Insurance companies rarely pay this full amount. They usually pay much less.
Under the new law, courts will look only at the amount actually paid by insurance. Courts will not consider the higher billed amount anymore.
How the Old System Worked
Under the old law, injury victims often recovered more than what was paid for medical care. Courts could consider the full billed amount. This was true even if insurance paid far less and the rest was written off.
These higher bills often increased the value of an injury case. Victims did not pay those full amounts out of pocket. Still, the bills helped raise settlements and jury awards.
How the New Law Works
Under Senate Bill 231, recovery for past medical bills is limited. Victims can recover what insurance actually paid. They can also recover co pays and deductibles they paid themselves.
Victims still recover 100 percent of their real medical costs. However, they no longer recover money based on inflated or written off charges.
When people say victims now get 100 percent, they mean 100 percent of actual costs, not the original bill.
Why Lawmakers Passed This Law
Lawmakers say medical bills often show inflated sticker prices and support limiting recovery to what was actually paid.
Senate Bill 231 revises how personal injury compensation is calculated and limits evidence to actual amounts paid instead of full billed amounts, addressing so-called phantom damages and inflated claims. Supporters assure that victims can still recover for pain, suffering, and future care. The law only changes how past medical bills are counted.
The Louisiana Senate Bill 231 aims to reduce phantom damages.
Coverage of the law states the bill helps prevent phantom damages by clarifying that only actual insurer payments count, which prevents inflated or phantom charges from boosting awards.
Supporters say this created damages not tied to real economic loss.
Opponents argue the law weakens the collateral source rule. They worry injury victims may recover less money. The law changes the “collateral source” doctrine so jurors can only consider what insurers actually paid, rather than billed amounts that are never collected. This is intended to remove recovery for inflated charges.
Lawmakers argue the change is fairer to both sides and shifts damages closer to real costs.
The legislation is framed as a way to balance protecting injury victims with preventing inflated medical charges at trial and to make the law more transparent.
They also believe it will make jury verdicts more predictable.
Sponsors of the bill emphasized the intent to limit jury consideration to actual paid amounts, which can reduce unpredictability of awards.
Some lawmakers believe this may help control insurance costs.
Commentary on the law notes it aims to curb excessive claims and potentially help reduce car insurance premiums by focusing on real expenses rather than inflated billed charges.
Related: How Insurance Calculates Total Injury Loss Value
What Injury Lawyers Can Do for Victims
But Chris sees more opportunities than challenges in the new law. Here is how personal injury lawyers in Louisiana can still protect victims.
First, lawyers can focus more on future medical care in Louisiana injury cases. The new law limits past medical bills but does not limit future treatment costs. Attorneys can work with doctors to show future surgeries, therapy, and medications. Future medical costs are not affected by insurance write offs.
Second, lawyers can strengthen pain and suffering and loss of enjoyment of life claims. These damages are not based on medical bill amounts. Clear medical records and steady treatment help show how injuries affect daily life.
Third, lawyers can highlight out of pocket medical costs paid by the victim. This includes co pays, deductibles, mileage, equipment, and unpaid medical bills. Careful records are more important under the new law.
Fourth, attorneys can review whether all insurance payments were counted correctly. Insurance payments, liens, and secondary payers must be tracked carefully. Payment mistakes can lower compensation if they are not corrected.
Fifth, lawyers can guide clients early on medical care and documentation. Consistent treatment and clear diagnoses now matter more than high medical bills. Only necessary medical care carries strong legal value.
Sixth, lawyers can focus on proving fault and negligence. When medical damages are smaller, liability evidence becomes more important. Strong proof of fault can still lead to fair settlements.
Seventh, lawyers can better educate juries in Louisiana injury cases. They can explain how injuries disrupt work, family life, and daily routines. The impact of an injury is not measured only by medical bills.
If you were hurt in a car accident, truck crash, or slip and fall in Louisiana, understanding this law matters. The rules are changing, and knowing your rights is more important than ever.
If you have questions or want a FREE consultation, call Corzo at (225) 351-0459. Help, respect, and justice are only one call away.