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HB 1419

TO AMEND THE ARKANSAS WORKERS' COMPENSATION INSURANCE PLAN; AND TO REVISE THE REPORTING REQUIREMENTS FOR THE ARKANSAS WORKERS' COMPENSATION INSURANCE PLAN.

2025 Regular Session Introduced by Justin Boyd and 1 co-sponsor

HB 1419 aimed to enhance Arkansas workers' compensation by ensuring competitive selection of administrators, improving employee coverage, and increasing oversight.

WITHDRAWN BY AUTHOR
0
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Bill Summary · HB 1419

Summary of House Bill 1419

Bill Number: HB 1419
Title: To Amend the Arkansas Workers' Compensation Insurance Plan; and to Revise the Reporting Requirements for the Arkansas Workers' Compensation Insurance Plan
Status: Withdrawn by Author
Introduced: February 5, 2025
Classification: Bill

Purpose and Intent

House Bill 1419 aimed to amend the Arkansas Workers' Compensation Insurance Plan by revising the reporting requirements and the process for selecting administrators and servicing carriers. The intent was to enhance the efficiency and effectiveness of the workers' compensation system in Arkansas, ensuring that employers and employees receive adequate coverage and services.

Key Provisions

The bill proposed several significant changes to the existing law:

  1. Competitive Selection Process:

    • The Insurance Commissioner would be required to make a good faith effort to ensure competitive selection of the plan's administrator and servicing carriers at least every three years.
    • Selection criteria would include cost, financial stability, operational capabilities, service records, and other relevant factors.

  2. Suspension of Bidding:

    • The commissioner could suspend formal bidding if:
      • There was satisfactory improvement in the performance of the current administrator and servicing carriers.
      • Continuation of the current administrator was deemed in the best interest of Arkansas employers and plan operations.

  3. Coverage for Employees:

    • The bill emphasized the importance of providing adequate coverage for Arkansas employees working temporarily or occasionally in other states.

  4. Annual Reporting:

    • The Insurance Commissioner would be required to review plan operations and report annually to the Legislative Council and relevant Senate and House committees. This report would include:
      • Information on the competitive selection process.
      • Performance reviews of the administrator and servicing carriers.
      • Evidence of coverage provided to employees working in other states.

  5. Public Hearings:

    • The commissioner was encouraged to hold public hearings as necessary to achieve the objectives of the act and assist with the annual review and reporting process.

Impact

If enacted, HB 1419 would have affected:
- Employers in Arkansas: By ensuring that they have access to competitively selected administrators and servicing carriers, potentially leading to better service and coverage options.
- Employees: Particularly those who work in multiple states, as the bill aimed to enhance coverage provisions for out-of-state work.
- Insurance Administration: The bill would have introduced more rigorous oversight and accountability measures for the administration of the workers' compensation plan.

Procedural Aspects

  • The bill was filed on February 5, 2025, and was read for the first time, with rules suspended for a second reading and referral to the House Committee on Insurance & Commerce.
  • However, on February 18, 2025, the bill was withdrawn by the author, meaning it did not proceed further in the legislative process.

This summary provides an overview of HB 1419, highlighting its intended reforms to the Arkansas Workers' Compensation Insurance Plan and the implications for stakeholders within the state.

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

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