Proposed rate reductions under review by the state Division of Insurance would result in an average decrease of 17.5 percent of workers’ compensation insurance assigned risk rates and an average of 14.8 percent decrease for workers’ comp voluntary loss costs.
Gov. Bill Walker said these proposed rate reductions would reduce the burden on small businesses that strengthen the state’s economy. He thanked legislators and the Department of Labor and Workforce Development for their work on payment reform, which he said would contribute to significant rate reductions in January.
“If approved, this would be the biggest year-to-year decrease in workers’ compensation rates in 40 years,” said Labor Commissioner Heidi Drygas. “The department worked tirelessly to reform the workers’ compensation system to increase efficiency and lower medical costs, both major factors in premiums,” she said.
Alaska has reduced worker’s comp rates by approximately 25 percent since 2015, thanks to continuing declines in claim frequency and favorable medical cost trends, state officials said.