Anchorage, AK – Beginning in January, Alaska businesses will likely see an average decrease of 17.5 percent for workers’ compensation insurance assigned risk rates, and an average of 14.8 percent decrease for workers’ compensation voluntary loss costs.
“These proposed rate reductions are welcome news for Alaska businesses — lower workers’ compensation costs reduce the burden on the small businesses that strengthen our economy,” said Governor Bill Walker. “Thank you to the Alaska State Legislature and the Department of Labor and Workforce Development for their work on payment reform, contributing to significant rate reductions for 2019.”
The 2019 rate reductions follow 2018 rates that fell 5.4 percent from 2017. Alaska has reduced rates by approximately 25 percent since 2015, thanks to continuing declines in claim frequency and favorable medical cost trends.
“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.”
The Division of Insurance is responsible for determining whether the reduced rates proposed by the National Council on Compensation Insurance (the organization in charge of filing workers’ compensation insurance rates in Alaska) are adequate. If approved, the new workers’ compensation rates will go into effect in January.
Source: AK Governor’s Office