Approval of Workers' Compensation Voluntary Loss Cost and Assigned Risk Rate Filing

Department of Commerce, Community, and Economic Development DIVISION OF INSURANCE 550 West Seventh Avenue, Suite 1560 Anchorage, Alaska 99501-3567 Main: 907.269.7900 Fax: 907.269.7910 BULLETIN B 16-05 TO: ALL INSURERS WRITING WORKERS’ COMPENSATION INSURANCE IN THE STATE OF ALASKA AND OTHER INTERESTED PARTIES RE: APPROVAL OF WORKERS’ COMPENSATION VOLUNTARY LOSS COST AND ASSIGNED RISK RATE FILING On April 27, 2016, the Division of Insurance approved the National Council on Compensation Insurance filing for workers’ compensation loss costs and assigned risk rates. The filing amends the 2016 voluntary loss costs and assigned risk rates previously approved by the director by decreasing the overall average loss cost and assigned risk rate level 3.7%. This filing is effective May 1, 2016 for new and renewal policies. The filing was made as a result of amendments to AS 23.30 made by the legislature in 2014, which required the adoption of a new medical fee schedule for workers’ compensation claims. The legislation required a change in the fee schedule methodology, and the Alaska Department of Labor drafted regulations implementing the required changes in the fee schedule with the goal of reducing costs while protecting injured workers’ ability to access medical services. The filing approval anticipates the new fee schedule will reduce workers’ compensation medical costs and will pass that cost savings on to Alaskan employers in the form of reduced workers’ compensation premiums, beginning May 1, 2016. If you have questions regarding this bulletin, please contact the Division of Insurance, P.O. Box 110805, Juneau, AK 99811-0805; (907) 465-2515; or via electronic mail at insurance@alaska.gov. Dated April ____, 2016. ______________________ Lori Wing-Heier Director GOVERNOR BILL WALKER 28th