Steep drop in state workers’ comp rates to save $35M
Gov.
The proposed rate decreases for 2019 follow a 5.4 percent average rate decrease this year from 2017 and workers' compensation premiums are down roughly 25 percent since 2015, according to the governor's office.
Workers' Compensation Director
State officials are attributing the favorable trend to fewer claims and medical cost reductions.
"These proposed rate reductions are welcome news for
The rates are proposed by the
Marx said employers of oil and gas pipeline workers would see some of the most significant reductions at more than 26 percent versus current rates, while rates could drop for clerical workers -- typically with fewer on-the-job dangers -- in the 9 percent range if the proposals are approved. Automobile technicians should see rate reductions of about 13 percent, for example, she added.
Following approval by the Legislature in 2014, the
The fee structure changes put provider reimbursement rates more in-line with general group health insurance rates, according to Marx. It replaced a system of paying medical service providers at the 90th percentile of "usual and customary" fees in a given region.
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Alaska Chamber CEO
"It's just the fact that our employers are providing a safer working environment," Thayer said.
Reforming the state's workers' compensation program has been a major policy initiative of the Alaska Chamber for several years.
Last session the Legislature also took on other aspects of the workers' compensation system when it passed the governor's House Bill 79, which Walker signed in August. Among other things, the legislation clarified who is an independent contractor and who needs to be covered by workers' compensation insurance and eased the process for obtaining workers' compensation exemptions, reporting data and making payments.
Thayer said HB 79 "brought
He said the Chamber will continue advocating for caps on legal fees for workers' compensation cases and other changes, such as treatment guidelines.
"There's a lot of work that's been done but a lot of work that still needs to be done," Thayer said.
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