Alaska Leads the Nation in Workers Compensation Cost Reductions
The new study credits the state’s efforts in improving workplace safety.
- By Robert Yaniz Jr.
- Mar 29, 2024
A recent study by The National Academy of Social Insurance (NASI) has revealed a decrease in workers’ compensation costs for employers in Alaska due to enhanced safety measures in workplaces.
According to NASI's findings, Alaska experienced the most considerable drop in workers’ compensation costs nationwide, with a 35.9 percent reduction. Forty-seven states reported lower employer costs per $100 of covered wages for workers’ compensation, with a median decrease of 5 percent. Notably, Alaska's employers enjoyed an 11.6 percent decrease from 2020 to 2021, the fourth-highest in the nation.
“Safety in the workplace affects a business’s bottom line,” Cathy Muñoz, deputy commissioner of the state’s Department of Labor and Workforce Development said in a statement. “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.”
The report underscores Alaska's unique position as the only state to consistently reduce premium costs (excluding reinsurance) from 2018 to 2021, with a cumulative reduction of 46 percent since 2015. This achievement reflects the state's commitment to improving workplace safety and reducing financial burdens on businesses.
About the Author
Robert Yaniz Jr. is the Content Editor of Occupational Health & Safety.