In Arkansas, the workers' compensation duties are administered by the Arkansas Workers' Compensation Commission, which has been in effect since December, 1940. The purpose of the workers' compensation insurance is in the area of economic, social and moral benefits for not only employees and their dependents, but their employers. The impact of these measures also protects the individuals involved and the society in general from those burdens imposed due to injuries or illnesses caused by work activities or environment.
All Arkansas employers, with the exception of those specifically exempted by law must provide insurance coverage to pay for expenses due to employees injured in job-related incidents, or those who fall prey to disease or illnesses due to the work environment.
Although the Arkansas Workers' Compensation Commission enforces workers' compensation statutes, laws and regulatory statements, it is not, in itself, an insurance company. Its activities ensure that all covered employers purchase insurance coverage for their employees either by initiating self insurance programs, or by securing coverage through commercial insurance carriers.
Another function of the Arkansas Workers' Compensation Commission is to regulate the awards made as part of workers' compensation to be certain that those providing the benefits to the eligible claimants make benefit payments that are accurate and timely.
The task of determining the extent of the claimant's disability and providing for fairness of the total compensation is often a disputed item. Benefits are awarded through the Arkansas Workers' Compensation Commission, through the actions of the three Commissioners and the staff of Administrative Law Judges. Adjudication of disputed claims in workers' compensation cases provides binding decisions. Provision for appeal of such decisions is handled through the Arkansas Court of Appeals and the Arkansas Supreme Court.
.The commissioners, themselves are direct appointments by the Governor of the State of Arkansas and are appointed for six year terms. In theory, one commissioner represents the interest of labor, one commissioner represents the interest of management and the Commission chairman is neutral and represents the interests of the general public.
The day-to-day work of monitoring the claims and the payments to the claimants, processing the settlements to claimants, making lump sum payments, approving requests for change of medical personnel, making sure that employers comply with insurance coverage requirements, approving self-insurance applications from employers, and participating in public relations programs and events to explain the duties and responsibilities of the Commission is handled through 11 divisions, including Support Services, Special Funds, Self-Insurer, Operations and Compliance, Medical Cost Containment, Legal Advisor, Health and Safety, Data Process, Clerk of the Commission, Administrative Services and Adjudication.
In Arkansas, there are six districts based upon the volume of claims within each county. The Administrative Law Judges travel through the state, but within an assigned district. It is their duty to conduct hearings to resolve disputes between employers / insurance carriers and claimants. Currently there are a total of thirteen Administrative Law Judges along with their support staff who maintain offices in Little Rock, Fort Smith and Springdale.
In 1993 the Arkansas Legislature created a Health and Safety Division within the Arkansas Workers' Compensation Commission. This division is responsible to serve as a resource center on issues pertaining to safety for both employers and employees in the State of Arkansas. The sections include Accident Prevention, Job Safety, Education and Training and Rule 32 Program Section. Rule 32 is a special category of employers who have substantially more workers compensation claims than other employers in the same line of work.
Arkansas has an active program which works to contain rising workers compensation costs by not only reducing the number of accidents and thus the claims resulting, but to set ceilings on provider fees so as to reduce the cost of payments made to service providers.
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