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Arkansas - Compensation & Benefit Legislation

ARKANSAS - AASHOWME

Demonstrates www.BenefitsReview.com™. Illustrates insurance carriers' coverages within the State.

 

ARKANSAS - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

 

Mandatory coverage of birth of adopted children is included in state's newborn health care mandate. Nursery care for 5 days, or until mother is discharged must also be covered.

 

Preventive care for children: Yes, to age 18.

 

(Arkansas Stat. Ann. Sections 23-79-129, 23-79-137, 23-79-141, 23-86-108, 23-86-118, 23-98-102)

 

ARKANSAS - ALCOHOLISM & DRUG ABUSE

Employer options.

Minimum yearly inpatient coverage: $6,000 over 24 months for inpatient and outpatient combined.

Minimum yearly outpatient coverage: $6,000 over 24 months for inpatient and outpatient combined.

Minimum lifetime coverage: $12,000. (Arkansas Stat. Ann. Section 23-79-139)

 

ARKANSAS - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: No. Follows FUTA.

 

ARKANSAS - CONTINUATION OF COVERAGE CONVERSIONS

Events Triggering Continuation of Coverage:

 

Death: No.

 

Job Termination: Yes. (120 days minimum continuation coverage.)

 

Reduction of Hours: No.

 

Divorce or Legal Separation: Yes. (120 days minimum coverage.)

 

Medicare Eligibility: No.

 

Other Provisions: Termination of insured's membership in the group policy will trigger continuation of coverage.

 

Early Termination of Continuation of Coverage: Becoming eligible for Medicare; becoming eligible for similar benefits, including coverage for pre-existing conditions under another group policy; failure to make a timely payment. (Arkansas Stat. Ann. Section 23-86-114)

 

ARKANSAS - COORDINATION OF BENEFITS

Requires use of the birthday rule if coordinating benefits (effective 1/13/86). Based on 1984 National Association of Insurance Commissioner Rules model. (Arkansas Ins. Rule and Reg. 21)

 

ARKANSAS - COST-OF-LIVING

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

 

ARKANSAS - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

State has no statutory requirements.

 

ARKANSAS - GROUP HEALTH CODE ADDITIONS (MANDATED)

Adopted Children: Policies providing family coverage must cover adopted children upon birth or as of the date of filing a petition for adoption. (Arkansas Code Ann. Section 23-79-137)

 

Alcoholism and Drug Abuse Treatment: Insurers must offer group coverage for such treatment under terms no less favorable than for other illnesses. (Arkansas Code Ann. Section 23-79-139)

 

Coverage Continuation and Conversion: Group disability policies must provide continuation rights of up to 120 days and subsequent conversion rights to employees and dependents whose eligibility ceases due to termination of employment or membership, death of the insured, or dissolution of marriage. (Arkansas Code Ann. Section 23-86-114) Conversion rights must be provided to employees and dependents whose eligibility ceases for any reason, including discontinuance of the policy. (Arkansas Code Ann. Section 23-86-115)

 

Handicapped Dependents: Disability policies cannot terminate coverage of handicapped children while the person is incapable of employment due to mental retardation or physical handicap and chiefly dependent on the insured. (Arkansas Code Ann. Sections 23-85-131, -86-108(4))

 

In Vitro Fertilization: Disability policies must cover in vitro fertilization treatment. Outpatient coverage includes services performed at a medical facility, licensed or certified by the Arkansas Department of Health, or performed at a facility certified by the Arkansas Department of Health which conforms to the American College of Obstetricians and Gynecologists guidelines for in vitro fertilization clinics or those performed at a facility certified by the Arkansas Department of Health which meets the American Fertility Society minimal standards for in vitro fertilization programs. (Arkansas Code Ann. Sections 23-85-137, -86-118)

 

Mammography Screening: Insurers must offer group policyholders coverage for mammography screening as described. (Arkansas Code Ann. Section 23-79-140)

 

Medicare Supplement Policies: Medicare supplement policies or certificates shall not exclude or limit the benefits for pre-existing conditions for more than six months from the effective date of coverage. (Arkansas Code Ann. Section 23-79-404(b))

 

Mental Health: Insurers must offer group disability policyholders coverage for mental health with co-payments for inpatient, outpatient, and partial hospitalization (four to 16 hours per day) treatment not to exceed 20 percent of costs, and a maximum benefit of $7,500 annually. (Arkansas Code Ann. Section 23-86-113)

 

Newborns: Policies providing family coverage must provide benefits for newborns from the moment of birth for injury or sickness including treatment of medically diagnosed congenital defects, birth abnormalities, prematurity, and tests for hypothyroidism, phenylketomuria (PKU), and sickle-cell anemia. Policies also must cover routine nursery and pediatric care for well babies for up to 5 days of hospitalization. (Arkansas Code Ann. Section 23-79-129)

 

Outpatient Services: Disability policies covering impatient services including laboratory and pathology tests, x-rays, chemotherapy, radiation, and renal dialysis must offer coverage for such services rendered on an outpatient basis. (Arkansas Code Ann. Section 23-86-08(5))

 

Pediatric Preventive Care: Insurers must offer preventive coverage for children up to age 21 as described. (Arkansas Code Ann. Section 23-79-141), as amended by (B.C., 1995).

 

Prescription Drugs: Health insurers are required to cover drugs recognized for treatment of particular indications by standard reference compendia or medical literature. (SB671, 1995).

 

Providers: Health care practitioners, chiropractors, psychologists, dentists, podiatrists, and optometrists: Costs for services must be covered if the provider is licensed, the service is within the provider's scope of services, and the service is covered by the policy. (Arkansas Code Ann. Sections 17-80-101, -89-401, -89-403, -95-101, 23-79-114) All providers must be given the opportunity to participate in health benefit plans. (SB299, 1995).

 

Speech and Hearing Therapy: Insurers must offer coverage for treatment of speech and hearing impairment. Arkansas Code Ann. Section 23-79-130)

 

ARKANSAS - GROUP HEALTH FOR SMALL EMPLOYERS

For insurance plans offered to small employers:

 

Eligibility Criteria: 2 - 25 employees.

 

Restrictions on premiums: Yes.

 

Restrictions on cancellation: Yes.

 

Pre-existing Conditions: State reports no statutory requirements.

 

Other: Plans covering fewer than 2 employees are exempt from general health insurance requirements.

 

(Arkansas Code Ann. Sections 23-86-101 et seq.)

 

ARKANSAS - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: No.

 

Percent of employees who must elect coverage (if employees pay part of premium): State has no statutory requirements.

 

Percent of employees who must be covered if employer pays all of premium: 100%.

 

Minimum number of employees in group plan: State has no statutory requirements.

 

Employer prohibited as beneficiary: No.

 

Grace period (days): 31. Mandatory conversion: Yes.

 

Other provisions: none. (Arkansas Stat. Ann. Sections 23-83-102)

 

ARKANSAS - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Sunday. Other: Columbus Day and Thanksgiving are recognized as days of observance by state statute. Any holiday proclaimed by Governor. If any holiday falls on Sunday, following Monday is a holiday; if holiday falls on Saturday, preceding Friday is a holiday. (Arkansas Code Ann. Sections 1-5-106, 1-5-107, 105-108, 105-109)

 

ARKANSAS - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

 

ARKANSAS - JURY DUTY & WITNESS TIME OFF

Employer Restriction for Discharging Employee for Taking Leave for Jury Service: Yes.

 

Remedies and Penalties: Violator is guilty of a Class A misdemeanor.

 

Other Requirements: Employee must give reasonable notice to employer. (Arkansas Code Ann. Section 16-31-106)

 

Employer Restriction for Discharging Employee for Taking Leave to be a Witness: State reports no statutory requirements.

 

ARKANSAS - LEAVES OF ABSENCE

Maximum Length of Leave: 6 months.

 

Paid Leave: State does not require paid leave for illness of immediate family member; paid leave is given for employee illness.

 

Acceptable Reason for Leave: Employee illness; care for immediate family member.

 

Employment Guarantees After Leave: Entitlement to reinstatement without loss of any rights unless the position is no longer available due to reduction of staff for budgetary reasons; when an employee is laid off because of budgetary reasons and is reinstated within 6 months, accumulated sick leave may be restored to the employee's credit.

 

Use of Vacation or Other Time-off Benefits: Employee must first use all other accumulated leave.

 

Certification Required: Certification is required for more than 5 consecutive days.

 

Effect of Leave on Other Benefits: Employee must pay to participate in group insurance programs while on leave.

 

Relationship of Family and Medical Leave Requirements to Pregnancy Disability Leave: Employee may use leave without pay for pregnancy after sick leave and annual leave are used.

 

Effect on Seniority Accrual During Leave. State reports no statutory requirements.

Minimum Requirements for Notification to Employer: Notification in advance, if possible, is required.

 

Conditions for Denial of a Request For Leave: State reports no statutory requirements. (Arkansas Code Ann. Sections 21-4-206-21-4-210)

 

See U.S. Federal Family and Medical Leave Act

 

ARKANSAS - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

 

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

 

ARKANSAS - MANDATED PROVIDERS

Optometrists, chiropractors, dentists, psychologists, podiatrists, licensed professional counselors, physical therapists, speech pathologists, audiologists, respiratory therapists, pharmacists, occupational therapists, advanced practice nurses, dieticians, orthodontists, prothetists, and direct access to obstetrician/gynecologists. Coverage for psychological examiners, certified nurse anesthetists, and osteopaths is an employer option. (Arkansas Stat. Ann. Sections 23-79-114, 23-79-142, 23-86-113, 23-99-203, 23-99-204, 23-99-406)

 

ARKANSAS - MENTAL HEALTH CARE

Employer option; statute requires minimum coverage if conditions arising from mental illness are covered.

 

Minimum yearly inpatient coverage: $7,500 for inpatient and outpatient combined.

 

Minimum yearly outpatient coverage: $7,500 for inpatient and outpatient combined.

 

Minimum lifetime coverage: No less than lifetime maximum for physical illness.

 

(Arkansas Stat. Ann. Section 23-86-113)

 

ARKANSAS - MINIMUM WAGE

Refer to the Federal minimum wage: $5.15 per hour (effective September 1, 1997).

 

State reports no statutory requirements.

 

Exempt: Certain professionals, certain agriculture, certain outside sales, certain students (sub-minimum wage of 85%). Apprentices and handicapped in special environments may have lowered wages by special application. (Arkansas Code Ann. Sections 11-4-203, 11-4-210, 11-4-214, 11-4-215)

 

SEE U.S. MINIMUM WAGE

 

ARKANSAS - NEW HIRE REPORTING

Who is required to report: All employers.

 

Who must be reported: All new employees and rehires.

 

Exempt from reporting: No exemptions.

 

Form(s) to file: Employer may develop own report or use W-4 form.

 

Filing deadline: Within 20 days of hire.

 

Employer information to be included: Name, address, and federal EIN.

 

Employee information to be included: Name, address, and SSN.

 

Penalty for failure to report: None reported.

 

(Act 12-76)

 

ARKANSAS - NEWBORN CARE MANDATE

Mandatory coverage. Nursery care for 5 days, or until mother is discharged must also be covered.

 

Preventive care for children: yes, to age 18. (Arkansas Stat. Ann. Sections 23-79-129, 23-79-137, 23-79-141, 23-86-108, 23-86-118, 23-98-102)

 

ARKANSAS - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act and LEAVES OF ABSENCE (above)

 

State reports no specific statutory requirements for Parental Leave.

 

ARKANSAS - PRE-EXISTING CONDITIONS

State reports no statutory requirements.

 

U.S. FEDERAL HEALTH INSURANCE PORTABILITY & ACCOUNTABILITY ACT

 

ARKANSAS - PROTECTED CLASSIFICATIONS

Age:   No.

 

Race:   Yes.

 

Color:  No.

 

National Origin: Yes.

 

Ancestry:   Yes.

 

Religion:  Yes.

 

Sex:  Yes.

 

Pregnancy:  Yes.

 

Sexual Harassment:  No specific law. State has expressed policy against discrimination.

 

(Ark. Code Ann. sections 16-123-102, 16-123-107.)

 

ARKANSAS - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

 

ARKANSAS - SHORT TERM DISABILITY CODE ADDITIONS

State does not require employer or employee participation in short term disability plans.

 

ARKANSAS - TERMINATION & SEVERANCE PAY

Date pay is due if employee is discharged: Within 7 days.

 

Date due if employee resigns: Not specified.

 

Wages: No.

 

Vacation Pay: No.

 

Holiday: No.

 

Sick leave: No.

 

Severance: No. (Arkansas Stat. Ann. Section 11-4-405)

 

ARKANSAS - UNEMPLOYMENT TAX

Employer Contributions:

 

 

Voluntary Contribution Provision: Yes. Within 30 days of mailing rate notice, but not later than March 12.

 

(Arkansas Code Ann. Sections 11-10-303, 11-10-318, 11-10-702, 11-10-708, 11-10-717).

 

ARKANSAS - VACATION PAY

See TERMINATION & SEVERANCE PAY (above)

 

ARKANSAS - VOTING TIME OFF

Yes. Employer must schedule work hours or give each employee an opportunity to vote. (Arkansas Code Ann. Sections 7-1-102 et seq.)

 

ARKANSAS - WORKERS' COMPENSATION

Private Employers: Mandatory as to employers with 3 or more employees. Partners and sole proprietors may elect coverage.

 

Public Employers: Mandatory as to state agencies, departments, institutions, counties, and cities and towns. Excludes work-fare recipients.

 

Exceptions: Farm labor, domestic servants, casual employees, non-profit religions, charitable or relief organizations, vendors or distributors of newspapers and other publications.

 

Special Coverage Provisions: Voluntary as to exempted employments. Mandatory for employments in which 2 or more employees are engaged in building or building repair work, in which 1 or more employees of a contractor who subcontracts any part of a contract; and in which 1 or more employees is employed by a subcontractor. (U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)