Stricken language would be deleted from and underlined language would be added to present law.
*ANS354* 03/10/2025 3:09:11 PM ANS354
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 418 3
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By: Senator J. Payton 5
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For An Act To Be Entitled 8
AN ACT TO AMEND THE WORKERS' COMPENSATION LAW THAT 9
RESULTED FROM INITIATED ACT 4 OF 1948; TO ESTABLISH A 10
REQUIREMENT FOR WORKERS' COMPENSATION CARRIERS TO 11
SPEND AT LEAST EIGHTY -FIVE PERCENT OF PREMIUMS ON 12
HEALTHCARE CLAIMS AND WAGE CLAIMS; AND FOR OTHER 13
PURPOSES. 14
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Subtitle 17
TO AMEND THE WORKERS' COMPENSATION LAW 18
THAT RESULTED FROM INITIATED ACT 4 OF 19
1948; AND TO ESTABLISH A REQUIREMENT FOR 20
WORKERS' COMPENSATION INSURERS TO SPEND 21
AT LEAST EIGHTY-FIVE PERCENT OF PREMIUMS 22
ON HEALTHCARE CLAIMS AND WAGE CLAIMS. 23
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25
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SECTION 1. Arkansas Code ยง 11 -9-408, concerning insurance policies 27
under the Workers' Compensation Law, is amended to add an additional 28
subsection to read as follows: 29
(e)(1) An insurer providing workers' compensation benefits in this 30
state is required to have a medical loss ratio of at least eighty -five 31
percent (85%) for workers compensation claims. 32
(2) As used in this section, "medical loss ratio" means the 33
measure used in workers' compensation insurance to assess the percentage of 34
premium dollars spent on healthcare claims and wage claims versus 35
administrative costs. 36