(3-27-2024) - National study highlights decreased Workers Compensation costs for Alaska employers, safer workplaces for Alaskans

National study highlights decreased Workers Compensation costs for Alaska employers, safer workplaces for Alaskans

March 27, 2024
No. 24-7

JUNEAU - Alaska's Workers Compensation costs continue to decrease for Alaska employers amid improved workplace safety for Alaska's workforce. A study from The National Academy of Social Insurance (NASI) said that Alaska's workers compensation costs continue to fall for local employers. According to the study, Alaska's estimated workers compensation costs decreased by 35.9%, the largest decrease in the nation. Other states seeing a decrease in the report were Florida (33.6%), South Dakota (31.8%), and California (31.1%).

The study said 47 states saw a decrease in employer costs per $100 of covered wages for workers compensation. The report said the median decrease across all jurisdictions was 5 percent. Alaska had the fourth-highest decrease from 2020-2021, with a 11.6% decrease amongst Alaska's employers.

"Alaska was the state with the largest decrease in employer costs over the study period, and the only state to maintain consistent decreases in premium (not accounting for reinsurance) between 2018-2021 (NCCI, 2022)," according to the report. "Large rate cuts have been touted by the state, amounting to 46% since 2015."

Commissioner designee Cathy Muñoz said, "Safety in the workplace affects a businesses' bottom line. Improving workplace safety is important not only for employees, but also for employers. I applaud efforts of the Alaska Department of Labor and Workforce Development's Workers Compensation Division to work with Alaska's business community to ensure that employees are appropriately covered, and to help business owners create safe workplaces."

Read the Study at: https://www.nasi.org/research/workers-compensation/workers-compensation-benefits-costs-and-coverage-2021-data