Arkansas Debuts on ATRA’s 2025 Legislative HeatCheck Report as “Tort Reform Trailblazer”

The American Tort Reform Association named Arkansas a “Tort Reform Trailblazer” in its 2025 Legislative HeatCheck report, released today, recognizing state lawmakers’ recent success in enacting civil justice reforms. 

The report highlights the state’s efforts to address rising litigation costs and improve the state’s legal climate by enacting reforms to tackle inflated medical billing in civil lawsuits.

“We’re proud to recognize Arkansas as a ‘Tort Reform Trailblazer’ this year,” said Tiger Joyce, American Tort Reform Association president. “We commend the excellent work of Arkansas lawmakers and Gov. Sarah Huckabee Sanders this year to bring greater transparency and fairness to their courts.”   

Landmark Legislation Addresses Key Issues

The new law, signed by Gov. Sarah Huckabee Sanders in February, addresses “phantom” damage awards. House Bill 1204 was sponsored by Rep. Jon Eubanks and Sen. Missy Irvin and reforms how damages for past medical care are calculated in civil lawsuits:

• Limits Recovery to Actual Costs: Plaintiffs can recover only amounts actually paid for past necessary medical care or amounts that remain unpaid and for which they or a third party are legally responsible.
• Excludes “Sticker Price” Damages: The law prevents damage awards based on the initial, often inflated, amounts billed by healthcare providers, which are rarely paid in full due to negotiated discounts or insurance adjustments.
• Aligns with National Trends: Arkansas joins a growing number of states adopting “actual cost” recovery for medical damages to reduce excessive verdicts and improve fairness in civil litigation.

“Arkansas is setting a great example for other state lawmakers amid a national movement to ensure accuracy in damages,” Joyce said. “Limiting recovery to actual amounts paid for medical costs helps keep costs down for everyone. ‘Phantom’ damages, which are based on inflated, ‘sticker price’ medical bills rarely paid in full, often result in windfalls for trial lawyers.”

Economic Impact: Relief for Arkansas Families and Businesses

A recent report found that excessive tort costs impose an annual “tort tax” of $795.19 per resident and contribute to the loss of more than 21,000 jobs statewide. The economic impact included an estimated $2.34 billion reduction in GDP and $124.7 million in lost state revenue.

ATRA’s Legislative HeatCheck report evaluates a select group of states’ progress — or lack thereof — in enacting meaningful tort reform measures during their most recent legislative sessions. 

Arkansas’ legislature joins Georgia, Montana and Oklahoma lawmakers as 2025’s “Tort Reform Trailblazers.” The full Legislative HeatCheck report is available at heatcheck.atra.org.

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About the Legislative HeatCheck: The Legislative HeatCheck is an annual analysis, started in 2024 by the American Tort Reform Association, that assesses which states are making strides to improve their civil justice systems through tort reform and which states remain in dire need of legal reform. The report categorizes a select group of states into three groups:

• Tort Reform Trailblazers: States that have recently enacted key tort reform measures to rein in lawsuit abuse and improve their legal climates.
• Lawsuit Infernos: States whose legislatures are actively expanding liability and worsening their civil justice systems or failed to pass any meaningful legal reforms during their latest legislative sessions, leaving their civil justice systems mired in a litigious status quo.
• Heat Watch: States whose legislatures still are in session and are considering either positive or negative legislation. These states are placed on “Heat Watch” due to inaction on tort reform or the potential for liability-expanding legislation that could worsen their legal climates.

The Legislative HeatCheck provides an overview of tort reform battles waged in statehouses nationwide and serves as a guide for where reform efforts should be focused in the year ahead.