Hospital and Provider Privilege vs. Health Plan Claims in Louisiana

By the FigureMyTax Editorial Team · How we calculate

A Louisiana hospital, health care provider or ambulance service has a privilege for its reasonable charges on the net amount payable to you out of a recovery. Your attorney's privilege takes precedence, and the privilege is effective only if certified-mail notice is delivered before payment.

The privilege

La. R.S. 9:4752 gives a health care provider, hospital or ambulance service a privilege for its reasonable charges or fees on the net amount payable to the injured person, his heirs or legal representatives out of the total of any recovery, whether by judgment, settlement or compromise, and on the net amount payable by any insurer under a contract providing indemnity or compensation to the injured person. The attorney's privilege takes precedence.

Notice

The privilege becomes effective if, before payment of insurance proceeds or of any judgment, settlement or compromise, a written notice with your name and address and the provider's name and location is delivered by certified mail, return receipt requested, or by fax with proof of receipt, to you, your attorney, the person alleged to be liable, any liability carrier and any insurer obligated to pay you indemnity. It is effective against all persons given notice (9:4753).

Paying out after notice

A person who has received notice and pays money subject to the privilege to you or to your attorney is liable to the provider for the amount, not to exceed the net amount paid (9:4754).

Itemized statements

On a certified-mail request from anyone given notice, the provider must furnish an itemized statement of all charges within 30 days. If it does not, its privilege is dissolved and ineffective (9:4755). We found no percentage cap on the privilege.

How a plan's claim differs

A health plan's claim is not a provider privilege; see our post on made-whole, the Medicare and Medicaid post and the Louisiana medical lien calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Louisiana's rules apply to your specific case with a licensed Louisiana attorney.