Recently, Arkansas Gov. Sarah Sanders signed a major lawsuit abuse reform bill into law. According to the Arkansas Times, the new law will benefit consumers by lowering insurance premiums and promote economic growth:

In and of itself, House Bill 1204 seems simple. The proposed legislation seeks to limit damages a plaintiff can receive for medical bills to only the amount paid by an insurance company, or to “only those costs actually paid by or on behalf of the plaintiff that remain unpaid and for which the plaintiff or any third party is legally responsible.” 

Its sponsors, which include more than 40 senators and representatives, say its intent is to prevent plaintiffs in personal injury suits from profiting off of excessive insurance payouts and that it will lower insurance premiums. Proponents of tort reform say reining in excessive damage awards from personal injury lawsuits is pro-business and will promote economic growth. 

As more states consider reforms to protect consumers, expand transparency, and limit frivolous lawsuits, this news in Arkansas is another welcome step in the right direction.