HB1419
To Amend The Arkansas Workers' Compensation Insurance Plan; And To Revise The Reporting Requirements For The Arkansas Workers' Compensation Insurance Plan.
AI-Generated Summary
This bill proposes amendments to the Arkansas Workers' Compensation Insurance Plan. It revises the reporting requirements for the plan and modifies the processes for administration and plan selection. Specifically, the bill amends Arkansas Code § 23-67-313 concerning competitive selection. The Insurance Commissioner is required to competitively select the administrator and servicing carriers at least every three years. Factors for selection will include cost, finances, operational capabilities, service records, and other relevant criteria. The commissioner retains the ability to suspend formal bidding under certain conditions, provided that other administrative services have been sought and compared, and there has been satisfactory improvement in performance. These conditions also include the commissioner judging the continuation of the present administrator to be in the best interests of Arkansas, with proper coverage and service provided to employers. The bill also mandates the commissioner to review plan operations for compliance and to report annually to the Legislative Council and relevant legislative committees. The report should detail competitive selection, plan performance, the authority of the Arkansas office, and coverage provided in other states.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be Arkansas employers who utilize the Workers' Compensation Insurance Plan. By mandating regular competitive selection of administrators and servicing carriers, the bill aims to ensure that employers receive cost-effective, efficient, and high-quality services. The revised reporting requirements and oversight by the Insurance Commissioner could lead to improved plan operations and better service delivery, ultimately benefiting businesses seeking to fulfill their workers' compensation obligations. Additionally, employees of these Arkansas businesses could benefit from more reliable and comprehensive coverage, especially when working across state lines.
Who Might Suffer?
The entities that could be negatively impacted by this bill are the current administrator and servicing carriers of the Arkansas Workers' Compensation Insurance Plan. The requirement for competitive selection every three years, along with specific criteria for evaluation, introduces greater competition and the potential for existing providers to be replaced. If the current providers do not meet the standards of cost, financial stability, or service capabilities, they may lose their contracts. Furthermore, any entities that may have benefited from less stringent oversight or less frequent competitive bidding in the past could find their operational landscape changed by these amendments.