In Arkansas, the Workers Compensation Law requires that all employers with three or more employees must carry insurance to cover all reasonable and necessary medical expenses for job-related injuries and job-related illnesses. The insurance is carried by a private company or through a state-approved self-insurance program. The benefits cover a small portion of an individuals salary compensation during the recuperation period.

Changes in the Workers Compensation laws during the 1993 legislative session have resulted in one of the most comprehensive workers compensation reform bills in the nation. This legislation makes workers compensation insurance more affordable for employers. At the same time, the new reforms guarantee that employees will be compensated fairly and thoroughly for compensable injuries. Some provisions of the Arkansas Workers Compensation Reform are:

Guarantee that employees will be compensated fairly and thoroughly for compensable injuries. There is a provision to raise benefits for employees if the employer participates in safety programs. The new law also establishes a fraud investigation unit, which is designed to address the interests of all parties involved in the workers compensation claims process.

A two-tiered benefit program provides one tier for permanent-partial disability and one for other types of disabilities. The main goal, however, is to eliminate accidents entirely. A statewide safety program, an optional deductible up to $2,500, and a narrower definition of compensable injury are other key measures.

Narrowing Compensable Injuries: Strict definition of "compensable injury" defines injury as compensable if it is caused by a specific incident and is identifiable by time and place of occurrence. For injuries that are not caused by a specific incident and are not identifiable by time and place of occurrence (i.e.) carpal tunnel syndrome, hearing loss, etc.), the resultant condition is compensable only if the injury is a major cause of the disability or treatment.

Employees Accountability: On the job use of alcohol or drugs creates a presumption that the injury was caused by the intoxication. Eliminates injuries caused by horseplay and from recreational or social activities for the employees personal pleasure.

Other Key Measures: Medical cost containment measures. Fraud investigation unit statewide safety program optional deductible up to $2,500, pooling for small companies to buy more affordable workers compensation insurance.