This bill amends the Workers' Compensation Law established by Initiated Act 4 of 1948, specifically focusing on the financial responsibilities of workers' compensation insurers. It introduces a requirement that these insurers must allocate at least eighty-five percent (85%) of their premium income towards healthcare claims and wage claims. This measure aims to ensure that a significant portion of the funds collected from premiums is directed towards the actual benefits for workers rather than administrative costs.

The bill adds a new subsection to Arkansas Code 11-9-408, defining a "medical loss ratio" as the percentage of premium dollars spent on healthcare and wage claims compared to administrative expenses. This legislative change is intended to enhance the accountability of workers' compensation carriers and improve the financial efficiency of the system, ultimately benefiting workers who rely on these claims for their healthcare and wage support.

Statutes affected:
SB 418: 11-9-408