House Bill 419, Workers' Compensation Benefits Increases

BULLETIN B00-04 TO: All Alaska Workers’ Compensation Insurers and Producers and Other Interested Parties RE: House Bill 419; Increase in Workers’ Compensation Benefits and Premiums On June 1, 2000, Governor Knowles signed into law House Bill 419. Effective July 1, 2000, the provisions of this bill will increase workers’ compensation benefits that have not changed in over a decade. The new benefit levels are designed to provide compensation to injured workers that will adjust to keep up with future inflation. Adjustments for inflation will be accomplished by basing the new weekly rate of compensation upon the statewide average weekly wage for the preceding calendar year, rather than upon a fixed dollar maximum and minimum. Other benefit changes include an increase of more than 30 percent in compensation for physical impairment and significant increases in death benefits for widows, widowers, and orphans. The National Council on Compensation Insurance, Inc. (NCCI) has submitted to the Division of Insurance a loss cost filing to apply to policies that renew on or after July 1, 2000, and to all outstanding policies on a pro rata basis. This filing, if approved, will increase workers’ compensation premiums. NCCI’s filing is currently under review by the Division to ensure that it complies with Alaska’s insurance laws. DATED: June 22, 2000 Robert A. Lohr Director By: Stan Ridgeway Deputy Director