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Senate passes bill narrowing "made whole" rule for $5,000 MedPay reimbursements
Summary
The Senate Insurance & Commerce Committee on voice and roll-call votes approved Senate Bill 666 to allow recovery of the $5,000 auto-policy Medical Payments (MedPay) benefit by insurers in certain cases, a change proponents say restores legislative intent and opponents say harms insureds with low liability limits.
The Arkansas Senate Insurance & Commerce Committee voted to pass Senate Bill 666 after extended debate over whether insurers should be able to recoup $5,000 in MedPay benefits advanced to injured insureds.
Sponsor Sen. Ballinger said the bill targets only the $5,000 MedPay benefit and aims to restore the original legislative design for the payment and reimbursement process, arguing recent court rulings altered that balance. He told the committee the change is “pretty basic, pretty straightforward” and limited in scope.
Opponents, including attorney…
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