SB287
To Modify Certain Attorney Fees For Controverted Medical Expenses, Appeals, And Changes Of Physicians Under The Workers' Compensation Law That Resulted From Initiated Measure 1948, No. 4.
Last Action (Feb. 24, 2025): Sine Die adjournment
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AI-Generated Summary
Senate Bill 287 modifies the Arkansas Workers' Compensation Law regarding attorney fee structures for controverted medical expenses, appeals, and physician changes. Specifically, it establishes that attorney's fees for controverted medical benefits shall be 12.5% of the benefits up to a maximum of $5,000, to be paid by the employer or carrier in addition to the medical benefits awarded. The bill significantly increases the maximum allowable attorney fees for appeals: from $500 to $2,500 for appeals to the full commission, and from $1,000 to $5,000 for appeals to the Court of Appeals or Supreme Court. It also increases the attorney fee for a requested change of physician from $200 to $1,000 when that change is controverted by an employer or carrier and subsequently awarded by the commission. Additionally, the bill mandates that these fees for controverted medical benefits be paid by the employer or carrier rather than deducted from the employee's compensation. The changes are intended to apply to claims arising from injuries occurring on or after the act's effective date.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are attorneys representing injured workers, as the bill significantly increases the maximum allowable fees they can collect for successful appeals and contested changes of physician. Injured employees may also benefit in the sense that the bill shifts the burden of paying legal fees for controverted medical benefits directly onto the employer or insurance carrier, rather than having those fees deducted from the employee's medical award.
Who Might Suffer?
Employers and workers' compensation insurance carriers are the primary groups negatively impacted, as the bill increases their financial liability for attorney fees in the event of disputed claims, appeals, and physician changes. By raising the caps on fees that these entities must pay, the bill increases the overall cost of workers' compensation litigation for businesses and insurers operating within the state.
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