Arkansas HB1204: A Gift to Big Insurance, A Betrayal of Working Families
Submitted by Attorney Joey McCutchen
February 1, 2025
Arkansas lawmakers are at it again. HB1204, the bill that guts the collateral source rule, is nothing more than a blatant handout to insurance companies at the expense of hardworking Arkansans. This bill is premium theft—it lets insurance companies pocket money that rightfully belongs to injured individuals. It’s unfair, it’s irresponsible, and it’s a slap in the face to every responsible citizen who plays by the rules.
The collateral source rule has ensured that if you get injured due to someone else’s negligence, you receive the full amount awarded to you—not some discounted version that benefits insurance corporations. Under HB1204, if you’ve been responsible enough to have health insurance, the at-fault party gets a discount on what they owe you. That’s right—this law rewards irresponsibility and punishes those who do the right thing by carrying insurance.
Let’s be clear: this bill is a giveaway to big insurance companies. They want to pay out less, even when their policyholders are clearly at fault. Insurance companies are already raking in record profits while increasing our rates, denying our claims, and delaying our payments. President Trump has been right to rake them over the coals lately. This bill will 100% hurt working families, the responsible. This bill is especially a betrayal of our veterans. If passed, their total claim would be reduced for having insurance but an illegal alien with zero insurance will get a larger claim. No matter who they spin it that’s the practical effect. How is that fair to those who served our country?
This bill does nothing to improve our economy, create jobs, stop lawsuits, change hospital billing or anything else some suggest. It simply takes from us to give to them! This bill reduces the claims of victims of ALL civil cases with medical bills–rape victims, human trafficking victims, sexual child abuse victims,
The people of Arkansas work hard, pay their insurance premiums, and expect fair treatment when they are wronged. But this bill tells them: “Sorry, you don’t get what you paid for. The insurance companies need it more than you do.” It’s legalized theft. It’s swamp politics, it’s insider-trading in the worst way. It’s the powerful with a dozen lobbyists rigging the system against all of us.
Senator Josh Hawley (R-Missour) and Governor Jeff Landry (R-Louisiana) are examples of Republicans leading the charge willing to stand up against big insurance special interests. Landry even vetoed this same bill in Louisiana. We depend on our legislators to fight for us, not powerful out-of-state corporations and their CEOs.
This bill will be heard in the Arkansas Senate this week. Your senators are receiving immense lobby pressure to support this bill. Urge your senator to stand with working families and vote NO on HB1204.