Jason M. Hatfield is a Trial Lawyer with over 25 years of experience in Arkansas personal injury law.
Arkansas Governor Sarah Huckabee Sanders signed into law Act 28 last February. The law changed the amount of medical compensation an injured person can recover in an Arkansas personal injury case. For many, the law means lowered compensation amounts and, in some cases, big bills.
How Arkansas Act 28 Limits Medical Compensation in Personal Injury Cases
Act 28 adds a sentence to Arkansas Code Section 16-64-120, which governs damages in personal injury claims. The addition limits damages introduced to a jury for past medical care, treatment, or services to “those costs paid” or “that remain unpaid” by an injured person or their insurance company. Arguably, this new law is unconstitutional because it puts responsible citizens who pay premiums for health insurance at a disadvantage from irresponsible citizens who do not purchase health insurance.
Act 28 states the obvious at first glance, but in actuality, it punishes those injured victims who have secured good health insurance. It further unfairly gives the negligent party the benefit of all the premium dollars you have paid for your health insurance.
This is how it works, and this is why Big Business and the automobile insurance companies lobbied so hard to get this bill passed into Arkansas law. Let’s assume you are injured in a car wreck, and the other driver was 100% at fault. Your ambulance and emergency room bills after a car wreck total $20,000.00. If you are uninsured, i.e., have no health insurance, then you can present the full $20,000.00 bill to a jury. However, let’s assume you are a responsible citizen and you pay insurance premiums for superior health insurance. Let’s assume you have Blue Cross Blue Shield, and you have a $500.00 deductible. Let’s further assume Blue Cross adjusts the hospital bill down to $2,000.00. Under the new law, insurance defense lawyers will argue that you cannot tell the jury about the $20,000.00 bills, but instead you can only tell the jury about the $2,500.00 paid.
In determining a value to award for pain and suffering, juries almost always consider the amount of your medical bills. Some juries use a multiplier of the medical bills to come up with a number for pain and suffering or for the permanency of your injuries. Under the new law, uninsured injury victims will receive more compensation for their injuries than responsible citizens that paid premiums for quality health insurance.
What Does Arkansas Act 28 Say About Medical Compensation?
One way to think about medical bills is to imagine each charge as two separate items. The first is the “full” amount charged by the hospital. The second is the “adjusted” amount an insurance company pays. An amount might also be “adjusted” if an injured person negotiates for a lower rate with the hospital.
For example, suppose an injured person receives X-rays for a broken arm. The hospital might charge $5,000 for the use of the X-ray machine, the technician’s efforts, and the radiologist’s examination of the images. Through negotiations with the hospital, however, the injured person’s health insurance might pay only $1,800 for these services, saving $3,200.
Act 28 prevents a jury from hearing the actual amount billed for the services. The jury can only award $1,800 to repay the wounded person, not $5,000.
How Act 28 Affects Injury Settlements and Jury Awards
To many Arkansans, this math makes sense. Yet a personal injury claim is often about far more than mere dollar amounts. An injured plaintiff also seeks to highlight the full impact of negligence on their unique human life.
Limiting medical bill evidence can also limit a jury’s ability to understand the harm suffered. While the injured person might only pay $1,800 out of pocket for their X-rays, the lingering pain, loss of mobility, and other problems caused by a broken arm might be far larger than the dollar amount indicates. Without providing context about the medical bill, the injured person and their attorney must find other ways to explain to a jury just how bad the injury is.
Act 28 can also cost an injured person more money. In the example above, suppose the injured person pays only $1,800 toward their bills. The wounded person then settles their lawsuit or goes to court and receives $1,000 in medical damages. Six months later, the hospital bills the injured person again for the remaining $3,200. The injured person must pay this amount out of pocket and never has the chance to argue that it should be included in their medical damages.
Steps to Protect Yourself Under Act 28
Act 28’s effect is already appearing in Arkansas personal injury claims. In some cases, the total amount awarded for past medical bills is decreasing. Experienced Northwest Arkansas injury attorneys are adjusting how they negotiate settlements and present evidence to a jury, seeking to tell their clients’ full story within the confines of the new law.
If you’ve been injured, keeping close track of your medical bills is essential. Ensure you understand the total amount billed, the amount you or your insurer paid, and the difference between the two. Double-check that the provider isn’t legally holding you responsible for the difference. Talk to an attorney if you have trouble understanding your bills or receiving the compensation you deserve.
Why Working With an Arkansas Injury Lawyer Matters More Than Ever
Act 28 changes the legal landscape for those seeking injury compensation. Yet, Arkansas residents still have legal options after an accident. Seeking compensation can help you recover after an injury and hold negligent parties accountable.
An experienced Arkansas personal injury lawyer can help. Your attorney can investigate your case, negotiate with insurance companies, and advocate for the care and support you need. Reach out to the team at the Law Office of Jason M. Hatfield, P.A., for help with your Bentonville injury claim.
Need legal help?
The Law Office of Jason M. Hatfield, P.A., has served Arkansas injury victims for over 25 years. Call (479) 361-3575 or contact us online for a free case review.
Client Testimonials
“Best Workers’ Comp Lawyer in NWA!” Jason is very professional, knowledgeable, and patient. He walked me through the whole process of the workers’ compensation claim, ensuring I understood every step along the way. His guidance and expertise were invaluable, and I highly recommend his services to anyone in need of a reliable attorney.
“Professional and Compassionate Representation.” If you need a workman’s compensation attorney, Jason and his staff are the best in the business. I had a very challenging case, and Jason navigated it with skill and determination. His commitment to his clients is evident in everything he does, and I am grateful for the support and advocacy he provided.
“Outstanding Legal Service” Jason Hatfield is, without a doubt, the absolute best attorney I have ever had the privilege of knowing. He truly cares about each and every one of his clients, taking the time to understand their unique situations and needs. His dedication to achieving the best possible outcomes is unmatched.
These testimonials can help potential clients understand the level of dedication and care they can expect when working with the Law Office of Jason M. Hatfield, P.A., and reassure them that they are in capable hands.
FAQs
Can I still recover full compensation if my bills are unpaid?
Under Act 28, the recovery of damages for past medical care is limited to the amounts that have been paid or remain unpaid by the injured person or their insurance. This means insurance companies will argue you can only recover compensation up to the actual paid or outstanding amounts, not the full billed amount if it exceeds what was paid or remains unpaid.
How do I prove my expenses under Act 28?
To prove your expenses under Act 28, you must provide documentation showing the costs incurred for your medical care. This includes presenting evidence of the amounts billed by healthcare providers, the amounts covered by insurance, and any out-of-pocket payments made by you. It’s crucial to maintain detailed records and receipts to substantiate your claim.
What happens if my provider bills me later?
If your healthcare provider bills you after a settlement or court ruling, the amount billed may not be recoverable under Act 28 if it exceeds what was initially recognized in the case. Act 28 limits recovery to the amounts already paid or still unpaid at the time of the claim. Therefore, any subsequent billing could result in an out-of-pocket expense for you unless appropriately addressed in the initial claim or settlement discussions. It is advisable to consult with your attorney to understand potential liabilities and ensure that future bills are accounted for in your settlement negotiations.
Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Always consult an attorney about your specific situation.
