Bill > SB418

This bill amends the Arkansas Workers' Compensation Law by introducing a new requirement for workers' compensation insurance carriers. Specifically, insurers must now maintain a medical loss ratio (MLR) of at least 85 percent, which means that at least 85% of the premiums collected must be spent directly on healthcare claims and wage claims for injured workers, with no more than 15% going to administrative costs and other overhead expenses. The bill defines the medical loss ratio as a measure used in workers' compensation insurance to assess the proportion of premium dollars spent on actual worker benefits versus administrative expenses. By mandating this minimum spending threshold, the legislation aims to ensure that a substantial majority of insurance premiums are used for their intended purpose of supporting workers who have been injured on the job, rather than being retained as profit or spent on administrative overhead.

Health and Social Services

https://arkleg.state.ar.us/Bills/Detail?id=sb418&ddBienniumSession=2025%2F2025R