Arkansas recently passed HB 1204, a law that fundamentally changes how injury victims can recover compensation in personal injury cases. This new legislation affects what evidence can be presented in court and could significantly reduce the amount of money you receive after an accident, even when someone else is clearly at fault.
In this article, we will cover what you need to know regarding this law change and how it can affect your personal injury claim.
How Arkansas HB 1204 Changes Your Injury Claim
HB 1204 modifies what’s known as the “collateral source rule” in Arkansas. Under the old rule, if you were injured by someone’s negligence, the at-fault party had to pay for all the medical bills listed by your healthcare providers, regardless of whether your insurance negotiated those bills down.
The new law flips this on its head. Now, the at-fault party only has to pay what was actually paid for your medical care, not what was originally billed.
This might sound like a small technical detail, but it makes a massive difference in real-world cases.
Let’s say you go to the emergency room after a car accident, and the hospital bills $50,000 for your treatment. Your health insurance company negotiates that bill down to $15,000, which they pay on your behalf.
Under the old collateral source rule, the person who hit you would be responsible for the full $50,000. Under HB 1204, they only owe the $15,000 that was actually paid. That’s a $35,000 difference that comes directly out of your pocket.
The law goes even further by allowing defendants to present evidence of these reduced payments to the jury. This means insurance companies and their lawyers can now show jurors that your medical bills were paid at a discount, which can make your injuries seem less serious than they actually are.
When a jury sees that a serious surgery only “cost” $10,000 instead of the billed $40,000, they might think your injuries weren’t that bad. This creates an unfair picture of what you actually went through and what your medical care was worth.
What This Means for Different Types of Insurance Coverage
The impact of HB 1204 varies depending on what type of insurance paid for your medical treatment. If you used private health insurance, Medicare, or Medicaid, the reduction in recoverable damages can be substantial because these programs typically negotiate significant discounts with healthcare providers.
In some cases, Medicare or Medicaid might pay only 30-40% of the original bill, which means you could lose 60-70% of your medical damages under this new law.
If you paid for medical treatment out of pocket or used a medical lien, where the healthcare provider agrees to wait for payment until your case settles, the situation is different. These amounts typically aren’t discounted, so you may be able to recover the full value.
However, this creates a troubling incentive where injured people without insurance might actually fare better in the legal system, even though they face immediate financial hardship paying for care.
Many people don’t understand that they don’t have to pay for medical bills out of pocket when they have a valid injury claim, and this law makes that landscape even more confusing.
How This Law Affects Your Total Settlement
Medical expenses are often the foundation of a personal injury claim. Lawyers, insurance adjusters, and juries use medical bills as a starting point to understand the severity of your injuries.
When those numbers get cut down by 50% or more, it doesn’t just reduce your medical damages. It also affects the other parts of your claim, like pain and suffering, lost wages, and future medical needs.
Insurance companies are already using this law as a weapon to lowball settlement offers. They know that if your case goes to trial, the jury will only see the reduced amounts actually paid, not the true cost of your medical care. This gives them leverage to offer less money during settlement negotiations, knowing you’re facing an uphill battle if you decide to go to court. We’ve seen this tactic play out in other states with similar laws, and it’s already happening in Arkansas.
The law also creates complications when calculating future medical expenses. If you need ongoing treatment or future surgeries, how do we calculate what those will cost? Do we use the inflated billing rates that providers charge, or do we try to guess what an insurance company might negotiate them down to? This uncertainty makes it harder to accurately value your claim and fight for the full compensation you deserve.
Why You Need Legal Help More Than Ever
With HB 1204 in effect, handling an injury claim on your own is riskier than it’s ever been.
Insurance companies have teams of lawyers who understand exactly how to use this law to their advantage. They’ll argue for the lowest possible valuation of your medical care, and they’ll use the reduced payment amounts to make your injuries look minor. Without someone on your side who knows how to counter these tactics, you’re likely to end up with far less than you deserve.
At Shamieh Law, we’ve adapted our approach to account for these new challenges.
We work quickly to gather evidence that shows the true impact of your injuries, not just the discounted price tag that an insurance company negotiated. We use cutting-edge technology to analyze accident scenes, medical records, and other evidence to build the strongest possible case. This means getting answers faster and presenting a complete picture of how the accident affected your life.
We’ve recovered over $200 million for injury victims, and we know that winning your case requires more than just filing paperwork. It takes aggressive advocacy combined with a deep understanding of what you’re going through. We treat every client like family, which means we’re not going to let an insurance company use a technicality in the law to cheat you out of fair compensation. When you call us, we get started fast because we know that early action can make the difference in building a winning case.
Important Considerations Under the New Law
Timing Matters More Than Before
Under HB 1204, the details of how your medical bills were paid become critical evidence in your case. This means you need to start working with a personal injury lawyer early, before those records become scattered or lost. We need to document not just what you were billed, but also what was paid, who paid it, and what negotiations took place. The sooner we get involved, the better we can protect your interests and build a record that shows the full value of your claim.
The law also affects how we approach settlement negotiations. Because insurance companies know they have an advantage at trial under HB 1204, they’re more likely to drag out cases and refuse fair offers. This means you need a legal team that’s ready to fight for as long as it takes. We don’t back down from insurance companies, and we’re prepared to take your case to trial if that’s what it takes to get you the compensation you deserve.
The Importance of Complete Documentation
Every detail of your medical treatment now carries extra weight. We need to document not just your injuries, but also the reasoning behind every test, procedure, and treatment you received. Under the new law, insurance companies will try to argue that some of your care wasn’t necessary, or that cheaper alternatives existed. By thoroughly documenting why your doctors made the choices they did, we can fight back against these arguments and show that your treatment was appropriate and necessary.
This also means keeping detailed records of how your injuries affect your daily life. Pain and suffering damages are now more important than ever because they can’t be reduced by the collateral source rule. If we can show how your injuries changed your life, limited your activities, and caused ongoing pain, we can fight for compensation that reflects your true losses, not just the discounted medical bills.
Understanding Your Insurance Coverage
Many people don’t realize how their health insurance coverage will interact with a personal injury claim under HB 1204.
Some insurance policies include subrogation clauses, which means the insurance company can ask to be repaid if you receive a settlement or verdict. Under the new law, this creates complex questions about who gets paid what, and in what order. We handle these negotiations with insurance companies so you don’t have to worry about the technical details.
The law also raises questions about whether you should use your health insurance for accident-related injuries, or whether you should try to work out payment arrangements with healthcare providers. These decisions can have major impacts on your case, and you need guidance from someone who understands both the legal and practical implications. We help our clients think through these choices and make informed decisions that protect their financial interests.
Ready to Fight for What You Deserve?
HB 1204 makes injury claims more complicated, but it doesn’t change the fact that you deserve fair compensation when someone else’s negligence hurts you.
We know how to fight for your rights under the new law and make sure insurance companies don’t use legal technicalities to shortchange you. Contact our team today by calling 501-361-1334 to discuss your case and learn how we can help you get the compensation you deserve.