(Listen to the full interview here)
Insurance reform is on the slate for this legislative session, and plenty in Louisiana are hopeful that impactful changes will be made. Louisiana residents pay higher rates for insurance of most types than surrounding states like Texas and Mississippi.
Leah Long, State Director of the National Federation of Independent Businesses, told WWL’s Tommy Tucker those costs may drive some businesses out of the state.
“This area has an abundance of excessive litigation costs, which raises the costs of insurance. It’s an excessive lawsuit abuse area here,” Long explained.
“We’re interested to see which bills will be filed, but we’re looking to work with the legislators, the Governor, and Insurance Commissioner Tim Temple to try to chip away at the insurance problem we have in the state and make it more affordable for everyone,” Long went on to say.
While those heavier insurance burdens are felt by residents of the state as well, Long explained to WWL’s Tommy Tucker that the trickle-down effect of those costs may cause smaller businesses to shrink their staff or move out of state entirely.
“For a small business owner, if insurance premiums go up, it’s hard to incur. Do you pass it on to the consumer or do you eat that cost and add it to your bottom line? These are tough decisions for business owners who may already be struggling,” she illustrates.