TO AMEND THE WORKERS' COMPENSATION LAW THAT RESULTED FROM INITIATED ACT 4 OF 1948; AND TO ESTABLISH A REQUIREMENT FOR WORKERS' COMPENSATION INSURERS TO SPEND AT LEAST EIGHTY-FIVE PERCENT OF PREMIUMS ON HEALTHCARE CLAIMS AND WAGE CLAIMS.

Senate Bill 418 proposes to amend Arkansas's Workers' Compensation Law. It directly affects workers' compensation insurers operating within the state. The bill would require these insurers to spend at least 85% of their collected premiums on healthcare and wage claims for injured workers. This percentage, defined as the "medical loss ratio," measures the portion of premiums allocated to claims versus administrative costs.