Arizona 2025 Legislative Updates: Workers’ Compensation Reform

Arizona’s 2025 legislative session brought meaningful changes to the state’s workers’ compensation system, aimed at improving benefits, clarifying administrative roles, and expanding access to coverage. Here’s a quick summary of the key bills that passed:

SB1551 – Disability Benefits & TPA Recognition

This comprehensive reform bill updates several aspects of Arizona’s workers’ compensation law:

• Increased Dependent Allowance: Workers receiving temporary total disability benefits will now receive \$100/month per dependent, up from \$25.

• Fee Schedule Transparency: The Industrial Commission of Arizona (ICA) must now publish medical and dental fee schedules, improving clarity for providers and claimants.

• Electronic Notices: Parties may now receive notices electronically unless they opt out.

• TPAs as Interested Parties: Third-Party Administrators (TPAs) and authorized insurer representatives are now formally recognized as interested parties in death benefit claims, giving them standing in related proceedings.

  
  

HB2032 – Assigned Risk Plan Reform

This bill revises the rules for employers seeking workers’ compensation coverage through the assigned risk plan:

• Employers denied coverage by two or more insurers may qualify unless they:

  • Fail safety or audit requirements.

  • Have unpaid premiums.

  • Misrepresent application details.

• Employers can be removed from the plan if they later meet compliance standards.

  
  

These legislative updates reflect Arizona’s ongoing efforts to modernize its workers’ compensation system and ensure fair treatment for both workers and employers.