Act 651 of 2025 - Meaning of "Insured Employees"

[LOGO] [LOGO] Hugh McDonald SECRETARY OF COMMERCE Jimmy Harris COMMISSIONER, ARKANSAS INSURANCE DEPARTMENT Bulletin No. 13-2025 Date: October 13, 2025 To: All Licensed Healthcare Insurers, Health Maintenance Organizations, Hospital Medical Service Corporations, and Other Interested Parties From: Arkansas Insurance Department Subject: Act 651 of 2025 - Meaning of "Insured Employees" Act 651 of 2025 increased the threshold number of employees a policyholder must have before a healthcare insurer is required to provide the reports described in Ark. Code Ann. § 23-86-119. Under Ark. Code Ann. § 23-86-119(a)(1), an insurer that issues or delivers a group accident and health insurance policy to a policyholder “with more than fifty (50) insured employees under a comprehensive group health insurance policy” shall, upon request of the policyholder, provide a report containing premium, claim, and enrollment information as specified in the statute. Because healthcare insurers typically determine group size based on the average total number of employees, rather than the number of insured employees, the Department interprets Ark. Code Ann. § 23-86-119(a)(1) to require a healthcare insurer to provide the report if the policyholder employed an average of more than fifty (50) total employees during the preceding calendar year. Accordingly, a healthcare insurer shall not refuse to provide a report to a policyholder on the grounds that the policyholder has fifty (50) or fewer insured individuals, so long as the policyholder employed an average of more than fifty (50) total employees during the preceding calendar year. Please direct all inquiries related to this Bulletin to AID’s Legal Division at (501) 371-2820 or email to insurance.legal@arkansas.gov. Jimmy Harris Commissioner Arkansas Insurance Department 10-13-2025 Date Arkansas Department of Commerce Arkansas Insurance Department 1 Commerce Way, Suite 102 · Little Rock, AR 72202 INSURANCE.ARKANSAS.GOV