Workers’ Comp Costs Drop in 2022
Based on data from the Oregon Department of Consumer and Business Services, Alaska’s workers’ comp costs have dropped from highest in the nation to near the middle.
The cost of workers’ compensation insurance in Alaska has dropped substantially in the last decade, according to a new study.
From Highest to Middle
The Alaska Department of Labor and Workforce Development points to new results from the Oregon Department of Consumer and Business Services, which surveys all fifty states every two years. The study found Alaska had the highest workers’ comp system costs of any state in 2012, but that figure has steadily dropped. In 2022, Alaska’s system costs ranked in the middle after a steady reduction while the national median remained flat.
The Oregon report shows Alaska ranked 21st in costs measured nationwide, the lowest ever in data tracked since 1986. For the first time ever, Alaska is not ranked in the top ten most costly places for employers in workers’ comp costs.
Labor Commissioner Tamika Ledbetter credits improvements in workplace safety and the publication of a predictable medical fee schedule.
“Members of the Alaska Workers’ Compensation Board and the Medical Services Review Committee have worked with the multiple stakeholders to bring costs down,” Ledbetter says. “In addition, a culture of workplace safety has advanced, leading to fewer workplace injuries over time.”
In 2012, the Oregon report rated Alaska as the most expensive jurisdiction in the nation, with workers’ comp costs at 160 percent of the median, or $3.51 per $100 of payroll. Today, Alaska is 107 percent of US median costs at $1.95 per $100 of payroll, a 55 percent cost reduction in ten years.
“Reasonable workers’ compensation costs can incentivize new startups and encourage existing businesses to expand and hire even more Alaskans,” says Governor Mike Dunleavy. “This will help Alaska move further down the road of economic recovery.”