The proposed bill aims to amend 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 is intended to ensure that a significant portion of the funds collected from premiums is directed towards the actual benefits for workers rather than administrative expenses.

To implement this requirement, 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 costs. This legislative change seeks to enhance the accountability of workers' compensation carriers and improve the overall efficiency of the system, ultimately benefiting workers who rely on these claims for their health and income support.

Statutes affected:
SB 418: 11-9-408