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HB 1381

CONCERNING AN INSURER'S RIGHT TO SUBROGATION AND REIMBURSEMENT FOR MEDICAL AND HOSPITAL BENEFITS.

2025 Regular Session Introduced by Blake Johnson and 1 co-sponsor

Arkansas bill establishing insurer subrogation and reimbursement rights for medical benefits, allowing recovery from third-party liability settlements—withdrawn by author February 2025.

WITHDRAWN BY AUTHOR
0
WeVote Research Nonpartisan
Bill Summary · HB 1381

Legislative bill overview

HB 1381 addresses insurers' rights to recover (subrogation and reimbursement) medical and hospital benefit payments they've made when a policyholder receives compensation from a third party responsible for their injury. The bill establishes the legal framework and limitations governing when and how insurers can reclaim portions of benefits paid from settlements or judgments obtained by the insured party.

Why is this important

Subrogation rights directly affect how much money injured parties keep from settlements—insurers reclaiming funds reduces what accident victims receive, while restrictions on subrogation protect injured parties from double-recovery penalties. The balance struck in these laws influences insurance premiums, litigation strategy, and the final financial outcome for injured Arkansans in personal injury cases.

Potential points of contention

  • Victim compensation vs. insurer recovery: Debate over whether insurers should be able to reclaim significant portions of settlements, potentially leaving injured parties with reduced recovery despite paying premiums
  • Fairness to insurers: Insurance industry concern that limiting subrogation rights forces them to subsidize third parties' liability and increases premiums for all policyholders
  • Complexity and dispute costs: Disagreement over whether subrogation procedures create excessive litigation and administrative burden relative to the amounts recovered

Compiled from official sources — confirm details with the bill’s official record.

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