FEE SCHEDULE NEWS:

• The state adopted new CPT codes and descriptions and the 2018 National Physician Fee Schedule Relative Value file effective January 1, 2018. The next update is expected in January 1, 2019.

REGULATORY ACTIVITY:

• The Arkansas Workers’ Compensation Commission announces the adoption of Rule 099.41, a drug formulary that regulates all outpatient medications prescribed as a result of work-related injuries. The rule adopts a formulary already in use for state government employees who are injured on the job, with additional provisions for opioid prescriptions based on guidelines established by the Centers for Disease Control and Prevention. The rule applies to new injuries occurring on or after July 1, 2018.

REGULATORY ACTIVITY:

• Per Ark Code §11-9-306(e) (2), the premium tax due for the calendar year 2019 was due April 1, 2020. Due to the on-going COVID-19 crisis and per the Governor's Executive Order # (20-06), the Workers' Compensation Commission is extending the date of first assessment of penalties prescribed under Ark. Code §11-9-304(b) by forty-five (45) days. §11-9-304(b) states: "If the tax provided for under this section is not paid within thirty (30) days of the date provided in §11-9-306, there shall be assessed a penalty for each thirty (30) days the amount so assessed remains unpaid which is equal to ten percent (10%) of the unpaid amounts and which shall be collected at the same time as a part of the tax assessed." Summary: The premium tax was due April 1, 2020. The first assessment of penalties would normally be on May 1, 2020. The May 1, 2020 date is hereby extended forty-five (45) days to June 14, 2020. As this is a Sunday, if the tax is not received in our office by June 15, 2020, the first ten percent (10%) penalty will be assessed, and the self-insurer may be subject to immediate revocation of the self-insurance authority.

REGULATORY ACTIVITY:

• Due to the on-going COVID-19 crisis and per the Governor's Executive Order # (20-06), the Workers' Compensation Commission is extending the date of first assessment of penalties prescribed under Ark. Code §11-9-304(b) by forty-five (45) days. §11-9-304(b) states: "If the tax provided for under this section is not paid within thirty (30) days of the date provided in §11-9-306, there shall be assessed a penalty for each thirty (30) days the amount so assessed remains unpaid which is equal to ten percent (10%) of the unpaid amounts and which shall be collected at the same time as a part of the tax assessed." Summary: The premium tax was due April 1, 2020. The first assessment of penalties would normally be on May 1, 2020. The May 1, 2020 date is hereby extended forty-five (45) days to June 14, 2020. As this is a Sunday, if the tax is not received in our office by June 15, 2020, the first ten percent (10%) penalty will be assessed, and the self-insurer may be subject to immediate revocation of the self-insurance authority.
• The insurance department issued bulletin 24-2020 on May 11, 2020 regarding COVID-19 emergency bulletin affecting pharmacy benefit managers and pharmacy services. The Arkansas Insurance Commissioner is issuing this Bulletin to assist consumers with insurance policies affected by the outbreak of the COVID-19 virus in Arkansas, providers of health services attempting to treat and contain the outbreak, and entities regulated by the Arkansas Insurance Department as they deal with urgent needs caused by the occurrence of the virus in Arkansas. The Arkansas Insurance Department is committed to assisting its fellow state agencies, local health departments, emergency managers, and health care providers in providing for the health and welfare of the people of Arkansas. On May  5,  2020,  Governor  Asa  Hutchinson  issued  Executive  Order  20-25  declaring  a  statewide  state  of emergency for the purpose of extending the public health and disaster emergency and declaration of the State of Arkansas as a disaster area resulting from the state-wide impact of COVID-19 an additional forty-five (45) days from the issuance of EO 20-25. The  Order  may  impact  various  insurance  regulatory  statutes  so  that  the  Department  may  effectively  render maximum assistance to overcome any potential impediment to the rapid and orderly rendering of assistance to our citizens affected by the virus. To view this bulletin, go to https://insurance.arkansas.gov/resource-library/resources/.

REGULATORY ACTIVITY:

• The Arkansas Workers' Compensation Commission offices continue to be CLOSED TO THE PUBLIC in accordance with state directives concerning limiting COVID-19 exposure. Commission employees are working remotely away from the office. All prehearing conferences, joint petitions, and full hearings are now postponed through May 15, 2020.
• Issued insurance Bulletin Number 18-2020 regarding compliance with regulatory requirements during the COVID-19 public health emergency. To view the notice, go to https://insurance.arkansas.gov/uploads/resource/documents/18-2020.pdf.

REGULATORY ACTIVITY:

• The Arkansas Workers' Compensation Commission offices are closed to the public in accordance with state guidelines concerning limiting COVID-19 exposure. All prehearing conferences, joint petitions, and full hearings for the next two weeks are postponed until further notice. Applications for Certificates of Non-Coverage must be submitted by mail to P.O. Box 950, Little Rock, AR 72203-0950. If you have any questions, please call   501-682-3930or1-800-622-4472. You may also contact the Commission via email at awcc.info@arkansas.gov.

REGULATORY ACTIVITY:

• The Commission issued an update to Advisory 2000-1 Revised, announcing that the maximum rates for 2020 will be $711.00 for Total Disability and $533.00 for Permanent Partial Disability. To view the advisory, go to http://www.awcc.state.ar.us/news.html.
• The Commission also announced that the threshold for the Death and Permanent Total Disability Fund will no longer be updated in Advisory 2007-1. Act 5 of the Third Extraordinary Session of 2016 provides that no claims shall be made to the Death and Permanent Disability Trust Fund after June 30, 2019.

LEGISLATIVE ACTIONS:

• House Bill 1850

The enacted legislation is titled The Empower Independent Contractors Act of 2019. The legislation amends portions of Act 4 of 1948 regarding definitions of employee, employment and employment status. The legislation establishes new criteria for determining employment status in determining whether an individual is an employee or independent contractor.  Effective Date August 1, 2019.

FEE SCHEDULE NEWS:

• The state has adopted the new Workers' Compensation Medical Fee Schedule and Laboratory Fee Schedule effective January 1, 2019.  The next update is expected in January 2020.

REGULATORY ACTIVITY:

• Announced that the 2019 Arkansas Workers' Compensation Commission Educational Conference will be held at the Little Rock Doubletree/Robinson Center in Little Rock, Arkansas on November 6-7.  To view the announcement, go to http://www.awcc.state.ar.us/index.html.

REGULATORY ACTIVITY:

• The Commission issued an update to Advisory 2000-1 Revised, announcing that the maximum rates for 2019 will be $695.00 for Total Disability and $521.00 for Permanent Partial Disability.
• The Commission also issued an update to Advisory 2007-1 Revised, announcing that the threshold at which the Death and Permanent Total Disability Trust Fund will assume payments of benefits for injuries resulting in permanent total disability or death will be $225,875 for 2019 (through June 30, 2019).
  • To view the advisories, go to http://www.awcc.state.ar.us/advind.html.

• The insurance department issued the final regulation Rule 118 regarding Pharmacy Benefits Managers.  The regulation became effective August 27, 2018. To view the final regulation, go to  https://insurance.arkansas.gov/pages/industry-regulation/legal/finalized-rules/.