Workers’ compensation insurance rates are going down in 2021 by an average of 9.6 percent from current approved levels, in an effort to reduce the burden on Alaska businesses, the Dunleavy administration said.
According to the Alaska Department of Labor and Workforce Development the 2021 rate reductions signify a positive downward trend in reduced workers’ compensation losses.
Labor Commissioner Tamika Ledbetter credited efforts of the Workers’ Compensation Board and the Medical Services Review Board with making the reductions possible.
The upcoming cost reduction follow 2020 rates that represented a 13.4 percent reductio from the previous year.
Since 2015 rates have been reduced by approximately 46 percent, which can be attributed to continuing declines in claim frequency and favorable changes in medical cost trends.
According to Lori Wing-Heier, director of the Alaska Division of Insurance, her agency thoroughly reviewed the filings and ordered modifications to be made to ensure that the rates are justified.
