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Workers’ Compensation Rates Will Decrease in Alaska in 2021

Nov 2, 2020 | Featured, Government, Insurance, News

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Alaska businesses will see another year of decreased workers’ compensation insurance rates in 2021. Workers’ compensation voluntary loss costs will decrease by an average of 14.9 percent, and assigned risk rates will decrease by an average of 9.6 percent from the current approved levels.

“Lower workers’ compensation costs reduce the burden on Alaska businesses, which is especially good news as many have struggled with the COVID-19 pandemic,” says Governor Michael Dunleavy.

“This is the second year in a row that we are seeing significant savings in Workers’ Compensation system costs which will continue to benefit businesses across Alaska with reduced insurance premiums,” says Dr. Tamika Ledbetter, Department of Labor and Workforce Development (DOLWD) Commissioner. “I appreciate the good work of the Workers’ Compensation Board and the Medical Services Review Board for their efforts to make this happen.”

The 2021 rate reductions signify a positive downward trend in reduced workers’ compensation losses. This year’s lower rates follow 2020 rates that represented a 13.4 percent reduction 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.

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Alaska Business June 2021 Cover

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“We have thoroughly reviewed the filings, and ordered modifications to be made to ensure that the rates are justified,” says Lori Wing-Heier, director of the Alaska Division of Insurance.

The Division of Insurance is an agency housed within the Alaska Department of Commerce, Community and Economic Development (DCCED) tasked with protecting consumers in Alaska. For additional information about the division, visit commerce.alaska.gov/web/ins.

For information about DCCED and its other agencies, visit commerce.alaska.gov.

The Division of Workers’ Compensation is an agency housed within DOLWD tasked with the administration of the Alaska Workers’ Compensation Act. For additional information about the division, visit labor.alaska.gov/wc. For information about DOLWD and its other agencies, visit labor.alaska.gov.

Alaska Business Magazine June 2021 Cover

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On January 16, a fire destroyed the water plant and washeteria in the southwest Alaska village of Tuluksak. For the village of about 350 people, it was a devastating blow. The water plant was the only source of drinking water in the village, in which the primarily Yup’ik residents lack indoor plumbing and rely on honey buckets, not uncommon in the flat, swampy region.

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