| 1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
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| 2 | 2 | | *ANS354* 03/10/2025 3:09:11 PM ANS354 |
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| 3 | 3 | | State of Arkansas 1 |
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| 4 | 4 | | 95th General Assembly A Bill 2 |
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| 5 | 5 | | Regular Session, 2025 SENATE BILL 418 3 |
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| 6 | 6 | | 4 |
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| 7 | 7 | | By: Senator J. Payton 5 |
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| 8 | 8 | | 6 |
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| 9 | 9 | | 7 |
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| 10 | 10 | | For An Act To Be Entitled 8 |
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| 11 | 11 | | AN ACT TO AMEND THE WORKERS' COMPENSATION LAW THAT 9 |
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| 12 | 12 | | RESULTED FROM INITIATED ACT 4 OF 1948; TO ESTABLISH A 10 |
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| 13 | 13 | | REQUIREMENT FOR WORKERS' COMPENSATION CARRIERS TO 11 |
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| 14 | 14 | | SPEND AT LEAST EIGHTY -FIVE PERCENT OF PREMIUMS ON 12 |
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| 15 | 15 | | HEALTHCARE CLAIMS AND WAGE CLAIMS; AND FOR OTHER 13 |
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| 16 | 16 | | PURPOSES. 14 |
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| 17 | 17 | | 15 |
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| 18 | 18 | | 16 |
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| 19 | 19 | | Subtitle 17 |
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| 20 | 20 | | TO AMEND THE WORKERS' COMPENSATION LAW 18 |
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| 21 | 21 | | THAT RESULTED FROM INITIATED ACT 4 OF 19 |
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| 22 | 22 | | 1948; AND TO ESTABLISH A REQUIREMENT FOR 20 |
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| 23 | 23 | | WORKERS' COMPENSATION INSURERS TO SPEND 21 |
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| 24 | 24 | | AT LEAST EIGHTY-FIVE PERCENT OF PREMIUMS 22 |
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| 25 | 25 | | ON HEALTHCARE CLAIMS AND WAGE CLAIMS. 23 |
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| 26 | 26 | | 24 |
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| 27 | 27 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25 |
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| 28 | 28 | | 26 |
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| 29 | 29 | | SECTION 1. Arkansas Code ยง 11 -9-408, concerning insurance policies 27 |
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| 30 | 30 | | under the Workers' Compensation Law, is amended to add an additional 28 |
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| 31 | 31 | | subsection to read as follows: 29 |
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| 32 | 32 | | (e)(1) An insurer providing workers' compensation benefits in this 30 |
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| 33 | 33 | | state is required to have a medical loss ratio of at least eighty -five 31 |
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| 34 | 34 | | percent (85%) for workers compensation claims. 32 |
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| 35 | 35 | | (2) As used in this section, "medical loss ratio" means the 33 |
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| 36 | 36 | | measure used in workers' compensation insurance to assess the percentage of 34 |
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| 37 | 37 | | premium dollars spent on healthcare claims and wage claims versus 35 |
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| 38 | 38 | | administrative costs. 36 |
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