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The recent passage of the Act 28 Arkansas personal injury law has made a major impact on how compensation is calculated in personal injury cases across the state. In this article, we break down…
Before Act 28 went into effect in August 2025, the collateral-source rule prohibited the introduction of any evidence (whether in settlement negotiations or in front of a judge or jury) about payments made on an injured person’s medical bills.
For example, if someone went to the hospital and their health insurance paid or adjusted their emergency room bill, that didn’t matter. The person at fault was still responsible for paying 100% of the bills. It didn’t matter if the injured person had planned ahead, purchased their own insurance, or even had a friend or family member help cover the expenses.
Under the previous rule, any collateral payments were not admissible when presenting the injured person’s medical bills. This protected injured people by allowing them to claim the full value of their medical expenses, regardless of any outside payments or adjustments.
Now that Act 28 is in effect, things work very differently.
Take a simple example involving health insurance: suppose you go to the hospital and receive a $10,000 bill. Your health insurance pays $1,000, and the remaining $9,000 is written off as a contractual adjustment. These write-offs happen because insurance companies use their large networks and negotiating power to secure discounts for their policyholders.
Under Act 28, only the amount actually paid, whether by the injured person or on their behalf, can be presented as evidence of medical damages. In this example, instead of being able to claim the full $10,000, you can now only present evidence of the $1,000 that was actually paid.
That means the total value of a personal injury claim is significantly reduced when health insurance or similar payments are involved. The portion of the bill that’s been adjusted or written off is no longer admissible as part of your damages.
Bradley Mullins, founding partner at Mullins & Blake Attorneys, has spent years representing injured Arkansans in complex personal injury and insurance disputes.
With a deep understanding of Arkansas injury law and firsthand experience navigating the collateral-source rule before and after the passage of Act 28, Bradley Mullins has helped countless clients recover fair compensation despite shifting legal landscapes. His insight into how Act 28 impacts claim value empowers clients to make smarter choices from day one.
If you’ve been injured, contact Mullins & Blake Attorneys today to protect your recovery under the new law.
The insurance companies benefit the most, without question. They’ll end up paying out far less to injured victims, especially those who use their health insurance to cover medical expenses. When the value of a claim is reduced because of Act 28, that’s money that stays in the insurance company’s pocket instead of going toward compensating the injured person.
Act 28 is not retroactive, but its timing still matters. If a lawsuit was filed before the law went into effect, the old collateral-source rule applies. For example, if someone was injured earlier in the year and their attorney filed the lawsuit in July before Act 28 took effect, the new law wouldn’t apply.
However, for any lawsuits filed after the effective date, Act 28 does apply, regardless of when the injury occurred. That means for cases that haven’t yet been filed or are still in negotiation, the new rules under Act 28 are now in play.
When you hire our firm, you’re not just getting an advocate, you’re getting an advisor. With the passage of Act 28, we’re now counseling clients very differently than before. In the past, we advised everyone to use their health insurance for medical treatment. Now, we’re helping clients make careful decisions about whether and how to use their insurance so that they don’t unintentionally lower their own settlements.
We guide clients on how to coordinate their benefits strategically, sometimes waiting to use health insurance until after the case is resolved, or finding other ways to manage bills without giving insurance companies an advantage.
For more information on Act 28 Arkansas personal injury, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (479) 227-3060 today.
Bradley Mullins, founding partner at Mullins & Blake Attorneys, has spent years representing injured Arkansans in complex personal injury and insurance disputes.
With a deep understanding of Arkansas injury law and firsthand experience navigating the collateral-source rule before and after the passage of Act 28, Bradley Mullins has helped countless clients recover fair compensation despite shifting legal landscapes. His insight into how Act 28 impacts claim value empowers clients to make smarter choices from day one.
If you’ve been injured, contact Mullins & Blake Attorneys today to protect your recovery under the new law.
