Abstract: Requires indemnification of healthcare providers by Medicaid managed care
organizations in cases of payments made in error by those organizations.
Proposed law provides that in all cases in which a Medicaid managed care organization (MCO)
adjudicates a claim which is properly billed by a healthcare provider and an overpayment to the
provider results due to an error of the MCO, the MCO shall indemnify the provider for any fine or
penalty levied by the state Medicaid program as a result of the overpayment.
Proposed law requires MCOs to cause any indemnification required by proposed law to be made
within 30 calendar days from the date the healthcare provider provides written notice to the MCO
of payment of the fine or penalty along with a copy of the fine or penalty notification from the state
Medicaid agency.
Proposed law stipulates that if the MCO fails to indemnify the provider within the period specified
in proposed law, the amount of the fine or penalty shall be considered an open account and subject
to the provisions of present law relative to liability for payment of such accounts (R.S. 9:2781).
(Adds R.S. 46:460.75)