Bill > HB1381

This bill modifies Arkansas law regarding an insurer's rights to subrogation and reimbursement for medical and hospital benefits. The bill clarifies that the law is intended to apply only to the first $5,000 in medical and hospital benefits. It amends the existing statute to specify that when a recipient of benefits recovers damages from a third party through a settlement or judgment, the insurer has a right to reimbursement and a lien on the recovery, proportional to the benefits paid. The bill also establishes that if the recipient does not pursue recovery against a liable third party, the insurer has a right of subrogation. Importantly, the bill explicitly states that the "made whole" doctrine (which typically requires an injured party to be fully compensated before an insurer can be reimbursed) does not apply in this context. The bill further specifies that insurers cannot require a joint check for settlement payments and explicitly notes that these provisions do not affect workers' compensation rights. The changes aim to provide clearer guidelines for insurers seeking reimbursement in medical benefit cases.

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https://arkleg.state.ar.us/Bills/Detail?id=hb1381&ddBienniumSession=2025%2F2025R