Auto Accident, PIP & Medical Billing State Guides
Arkansas Auto Accident, PIP & Medical Billing Laws
Arkansas operates an At-Fault automobile insurance framework under Ark. Code Ann. § 23-89-202 et seq. Automobile liability insurers must provide first-party medical benefits of at least $5,000 unless rejected in writing. Unpaid claims must be settled under prompt-pay rules carrying a 12% statutory penalty under § 23-89-208, and providers utilize statutory medical liens under Ark. Code Ann. § 18-46-101.
Plain-language overview
Add-On PIP (Mandatory First-Party Benefits Offering under Ark. Code Ann. § 23-89-202)
Arkansas combines traditional tort liability with mandatory first-party benefits coverage. Auto insurers must include medical and hospital benefits of at least $5,000 per person in every policy unless the named insured rejects coverage in writing. When bills exceed first-party coverage or when asserting claims against third-party liability insurers, healthcare providers enforce statutory liens on tort recoveries pursuant to the Arkansas Medical, Nursing, Hospital, and Ambulance Service Lien Act.
PIP and MedPay coverage
Mandatory First Party Coverage
$5,000 statutory minimum per person for reasonable and necessary medical, surgical, X-ray, dental, and hospital expenses incurred within 24 months of the accident (Ark. Code Ann. § 23-89-202(1))
Disability And Death
70% of lost weekly wages up to $140 per week for up to 52 weeks, and $5,000 in accidental death benefits
Written Rejection Required
Coverage is mandatory unless rejected in writing by the named insured (Ark. Code Ann. § 23-89-203)
Assignment Of Benefits
Healthcare providers routinely accept patient assignments of first-party benefits for direct billing
Medical fee schedule and reimbursement rules
Name
Reasonable and Customary Fee Standard
Rules
Arkansas does not maintain a statutory fee schedule table for motor vehicle accident medical bills. Providers bill based on reasonable charges customary in the community for similar medical services.
Cpt Basis
CPT/HCPCS itemized coding on standard CMS-1500 or UB-04 billing claims
Appeals and dispute resolution
Thirty Day Prompt Payment
Under Ark. Code Ann. § 23-89-208, benefits become overdue if not paid within 30 days after the insurer receives reasonable proof of claim and the fact and amount of loss. Overdue benefits bear interest at 6% per annum.
Twelve Percent Penalty And Attorney Fees
If the insurer fails to pay benefits within 45 days after demand without reasonable cause, the insurer is liable for a statutory 12% penalty plus reasonable attorney fees and costs under Ark. Code Ann. § 23-89-208(f).
Medical Lien Statute
Under Ark. Code Ann. § 18-46-101 et seq., physicians, hospitals, and ambulance services have a statutory lien upon claims and verdicts of injured patients. Notice of the lien must be served on the patient and tortfeasor/insurer and recorded with the circuit clerk of the county where services were rendered.
Claim and dispute deadlines
Deadlines can depend on the trigger event and may be affected by agency relief notices. Confirm the live rule before filing.
| Event | Timeframe |
|---|---|
| Accident Notice | Notice to insurer as soon as reasonably practicable |
| Treatment Window | Medical expenses incurred within 24 months of accident date (Ark. Code Ann. § 23-89-202) |
| Carrier 30-Day Pay Window | 30 calendar days from receipt of proof of claim (Ark. Code Ann. § 23-89-208) |
| Demand Letter / 45-Day Penalty Trigger | 45 calendar days from formal written demand before 12% penalty attaches |
| Medical Lien Recording | Notice served and recorded prior to payment of tort settlement or judgment |
| Statute of Limitations | 3 years from accident date for personal injury tort claims (Ark. Code Ann. § 16-56-105); 5 years for written contract actions |
Documentation checklist
- Arkansas First-Party Benefits Claim Application
- Executed Assignment of Benefits (AOB) and medical records authorization
- Itemized CMS-1500 or UB-04 billing form with CPT/HCPCS and ICD-10 diagnostic codes
- Contemporaneous medical records, emergency department charting, and diagnostic imaging reports
- Notice of Medical Lien with circuit clerk recording verification (for lien claims under Ark. Code Ann. § 18-46-105)
- Proof of certified mail transmission of claim and statutory demand letter
Responsible agencies
- Arkansas Insurance DepartmentStatewide Regulation of Auto Insurers, Market Conduct & Consumer Services
Primary legal and regulatory sources
- Arkansas Code Title 23, Subtitle 3, Chapter 89, Subchapter 2 (Motor Vehicle Insurance - First Party Coverage)Arkansas General Assembly · 2024
- Arkansas Code Title 18, Subtitle 4, Chapter 46 (Medical, Nursing, Hospital, and Ambulance Service Lien Act)Arkansas General Assembly · 2024
This operational reference is educational, is not legal advice, and does not create an attorney-client relationship.
Common questions
- What rules govern auto accident, pip & medical billing state guides in Arkansas?
- Arkansas operates an At-Fault automobile insurance framework under Ark. Code Ann. § 23-89-202 et seq. Automobile liability insurers must provide first-party medical benefits of at least $5,000 unless rejected in writing. Unpaid claims must be settled under prompt-pay rules carrying a 12% statutory penalty under § 23-89-208, and providers utilize statutory medical liens under Ark. Code Ann. § 18-46-101.
- What dispute deadlines should providers track in Arkansas?
- Accident Notice: Notice to insurer as soon as reasonably practicable; Treatment Window: Medical expenses incurred within 24 months of accident date (Ark. Code Ann. § 23-89-202); Carrier 30-Day Pay Window: 30 calendar days from receipt of proof of claim (Ark. Code Ann. § 23-89-208). Verify the trigger date, current agency notices, and any extension before acting.
- Which agencies administer these rules in Arkansas?
- The guide identifies Arkansas Insurance Department. The correct agency depends on the plan and claim jurisdiction.