The bill addresses an insurer's right to subrogation and reimbursement for medical and hospital benefits, specifically limiting its applicability to a maximum of $5,000 in benefits under Arkansas Code 23-89-202(1). It establishes that when a recipient of these benefits recovers damages through a tort claim, the insurer is entitled to reimbursement from that recovery, minus collection costs. Additionally, if the recipient does not pursue recovery from a liable third party, the insurer has the right to subrogation.

Key amendments include the introduction of a lien for insurers on the recovery amount equivalent to their benefit payments, and a clarification that the common law doctrine requiring a party to be made whole before reimbursement does not apply in this context. The bill also specifies that it does not alter the rights and obligations under the Workers' Compensation Law. Notably, it removes previous language that allowed for certain conditions on settlements involving joint checks to the injured party and their insurance company.