The Hidden Impact of Act 28 On Medical Bills And Settlement Payouts In Arkansas

The passage of Act 28 medical bills in Arkansas has changed the landscape of personal injury law in significant (and often surprising) ways. In this article, we unpack…

• How Act 28 might impact how you navigate medical bills after a personal injury.
• Whether Act 28 could lower the settlement amounts you’re entitled to.
• Who is most vulnerable under Act 28, and how an attorney can help.

How Does Act 28 Affect Personal Injury Settlement Payouts In Arkansas?

Act 28 is making things more complicated. We now have to be careful about when and how our clients use their health insurance or apply any discounts they’re entitled to.

If clients use their insurance right away, their cases can end up being discounted just because they acted responsibly and took care of their bills early. Now we often have to tell clients things like, Hold on—if you use your insurance too soon, your settlement could be substantially lower because of the payments and contractual write-offs your insurance company applies.

Instead, we may wait until after settlement negotiations to explore the best ways to use those benefits.

The short version is this: we’ve had to completely change how we process claims so that Act 28 doesn’t unfairly reduce personal injury settlement payouts. It’s added a lot of moving parts to every case.

How Does Act 28 Change What A Jury Can See About My Arkansas Medical Bills?

That’s still being figured out. The law was written vaguely, and judges are interpreting it differently. Some judges have allowed juries to see the discounted medical bills after insurance write-offs, while others still allow the full value of the bills to be presented, then make adjustments after the verdict.

What we’re hoping is that judges will continue to let juries see the full billed amount, with any necessary adjustments handled afterward. But because the law doesn’t specify exactly what juries can see or how judges must apply it, this area is still very much in flux.

Bradley Mullins, partner at Mullins & Blake Attorneys, has earned a reputation across Arkansas for helping injury victims navigate complex insurance and medical billing issues.

With years of experience handling cases impacted by the collateral-source rule, Bradley Mullins has guided countless clients through claims that hinge on how medical bills and insurance adjustments are presented. His deep understanding of Act 28’s hidden effects on settlements helps clients protect their full recovery and avoid costly mistakes early on.

If you’ve been injured, contact Mullins & Blake Attorneys today for strategic guidance under Arkansas’s new personal injury laws.

What Is The Difference Between Billed Charges And Amounts Paid In Arkansas Personal Injury Cases?

Billed charges are the sticker price, that is, the hospital’s full rate listed on its charge master. Amounts paid are usually lower, representing what your health insurance actually pays under its contract, plus any copay or deductible you pay out of pocket.

The difference matters because, under Act 28, only the amount actually paid or owed by or on behalf of the injured person can be presented as evidence of damages.

Our job now is to make sure that the billed charge and the amount paid are treated as one and the same when a case settles or goes to trial. That helps prevent insurance companies from paying less just because the client had coverage that negotiated a discount.

Are Cases Based On The Amount I Personally Pay?

Your case would be based on what you and your health insurance actually paid together. But here’s what we’re doing to protect clients: as soon as someone hires us, we contact hospitals and medical providers and instruct them not to bill the client’s health insurance right away.

We handle that part on the back end. We don’t want a situation where the billed amount and the paid amount differ before the case is resolved, because that automatically lowers the value of the claim.

If we let that happen, people with health insurance would essentially be subsidizing the insurance company’s savings by accepting smaller settlements. Ironically, under Act 28, people without health insurance could end up getting higher settlements because their billed charges remain the full amount, while insured people see theirs reduced. It’s not fair, but that’s the system Act 28 has created.

Will Act 28 Result In Lower Settlement Offers For Arkansas Injury Victims?

Absolutely. The amount of recovery is being reduced by the insurance adjustments made to medical bills. Instead of being compensated for the total cost of the care they received, injured people are now seeing their settlements cut down to reflect only the reduced or “adjusted” amounts. That means smaller settlements and less compensation for victims.

Bradley Mullins, partner at Mullins & Blake Attorneys, has earned a reputation across Arkansas for helping injury victims navigate complex insurance and medical billing issues.

With years of experience handling cases impacted by the collateral-source rule, Bradley Mullins has guided countless clients through claims that hinge on how medical bills and insurance adjustments are presented. His deep understanding of Act 28’s hidden effects on settlements helps clients protect their full recovery and avoid costly mistakes early on.

If you’ve been injured, contact Mullins & Blake Attorneys today for strategic guidance under Arkansas’s new personal injury laws.

Could Arkansas Personal Injury Victims Face Higher Out-Of-Pocket Costs After A Settlement Under Act 28?

They could, yes. Before Act 28, victims could present their full damages in court. Now, if their health insurance comes into play first, they can only present the reduced amounts, which results in smaller settlements.

That means less reimbursement at the end of the case and less money to cover what they’ve already paid out of pocket. Essentially, the insurance company gets the benefit of the victim’s responsible behavior, even though it had nothing to do with causing the injury. The result is lower settlements and less money in the injured person’s pocket when everything is over.

What Kinds Of People Will Be Most Vulnerable Under Act 28 As Its Long-Term Effects Become Clearer?

The people who are most seriously injured are likely to be hit the hardest.

Often, those with severe injuries have no choice but to use health insurance to access care, especially when specialists or certain hospitals won’t treat them without proof of coverage. These clients, who are already in the toughest situations, will end up with smaller settlements because their medical bills are reduced by insurance before they ever reach a courtroom. This is especially concerning for people on public insurance programs like Medicaid or Medicare.

For example, someone with $100,000 in medical bills might have those bills reduced to $20,000 or $30,000 after insurance adjustments. Before Act 28, that person could seek a six-figure settlement; now, they may only recover $60,000 or so.

So the most seriously injured, meaning those who depend on health insurance the most, are the ones getting hurt the most by this new law.

Is This A Case Of Insurance Companies Influencing The System To Protect Their Bottom Line?

Without a doubt. Insurance companies don’t like paying out large settlements to injured people, and they’ve been pushing for laws like Act 28 as a way to reduce those payouts. They’ll claim it’s about controlling rising costs, but the truth is, this doesn’t lower hospital bills or healthcare expenses. It simply shifts the financial burden onto injured people. Act 28 allows insurance companies to keep more money in their pockets, essentially propping up their profits at the expense of the most vulnerable Arkansans.

Still Have Questions? Ready To Get Started?

For more information on Act 28 medical bills in Arkansas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (479) 227-3060 today.