the state of the alaska
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The State of the Alaska Workers’ Compensation
System
March 20, 2013
Mike Monagle, Director
Division of Workers’ Compensation
Prepared by the Alaska Department of Labor and Workforce Development
The Good News....
Prepared by the Alaska Department of Labor and Workforce Development
Alaska Department of Labor Research and Analysis
Prepared by the Alaska Department of Labor and Workforce Development
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220000
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1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Emp
loym
en
t Employment in Alaska
2011 Workers’ Compensation Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
15,000
20,000
25,000
30,000
35,000
40,000
1993 1994 1995 FY97 FY98 FY99 FY00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Nu
mb
er
of
Inju
rie
s R
ep
ort
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Alaska Injury Frequency
2011 Workers’ Compensation Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
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Au
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Overa
ll R
ate
level
Historic Alaska Workers' Compensation Premium Rate Changes
The Bad News....
Prepared by the Alaska Department of Labor and Workforce Development
2011 Workers’ Compensation Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
How do Alaska’s Premium Rates Compare?
Source: 2012 Oregon Workers’ Compensation Premium Ranking Survey
State of Oregon, Department of Consumer and Business Services
Prepared by the Alaska Department of Labor and Workforce Development
O Calendar Year 2000 – 28th in the nation…
O Calendar Year 2002 – 15th in the nation…
O Calendar Year 2004 – 2nd in the nation…
O Calendar Year 2006 – 1st in the nation…
O Calendar Year 2008 – 1st in the nation...
O Calendar Year 2010 – 2nd in the nation...
O Calendar Year 2012 – 1st in the nation...
What’s Driving Premium Costs?
Prepared by the Alaska Department of Labor and Workforce Development
Cost Drivers O Medical Costs
O Indemnity Costs
O Legal Costs
O Reemployment Costs
Prepared by the Alaska Department of Labor and Workforce Development
Medical Costs
O Fees for Services
O Over Utilization
O Prescription Drug Use
Use of opioid narcotics
Physician Dispensing
Prepared by the Alaska Department of Labor and Workforce Development
Division of Workers’ Compensation 2011 Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
Division of Workers’ Compensation 2011 Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
Alaska Workers’ Compensation Division 2011 Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
2012 NCCI State Advisory Forum
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
2012 NCCI State Advisory Forum
Prepared by the Alaska Department of Labor and Workforce Development
Designing Workers’ Compensation Medical Fee Schedules
Workers’ Compensation Research Institute, June 2012
Prepared by the Alaska Department of Labor and Workforce Development
NCCI Medical Data Report for Alaska
January 2013
Prepared by the Alaska Department of Labor and Workforce Development
NCCI Medical Data Report for Alaska
January 2013
Prepared by the Alaska Department of Labor and Workforce Development
NCCI Medical Data Report for Alaska
January 2013
Prepared by the Alaska Department of Labor and Workforce Development
NCCI Medical Data Report for Alaska
January 2013
Medical Costs
O Fees for Services
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
Fee Schedules – Cost Savings and Unintended Consequences
Workers’ Compensation Research Institute - February 2013
Prepared by the Alaska Department of Labor and Workforce Development
Fee Schedules – Cost Savings and Unintended Consequences
Workers’ Compensation Research Institute - February 2013
Prepared by the Alaska Department of Labor and Workforce Development
Fee Schedules – Cost Savings and Unintended Consequences
Workers’ Compensation Research Institute - February 2013
Medical Costs
O Over Utilization
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
Interstate Variations in Utilization of Workers’ Compensation Medical Care
Workers’ Compensation Research Institute – February 2013
Prepared by the Alaska Department of Labor and Workforce Development
Interstate Variations in Utilization of Workers’ Compensation Medical Care
Workers’ Compensation Research Institute – February 2013
Prepared by the Alaska Department of Labor and Workforce Development
Interstate Variations in Utilization of Workers’ Compensation Medical Care
Workers’ Compensation Research Institute – February 2013
Prepared by the Alaska Department of Labor and Workforce Development
Drivers of Health Care Costs in Alaska and Comparison States
November 2011 Milliman report to Alaska Health Care Commission
Prepared by the Alaska Department of Labor and Workforce Development
Impact of Medical Treatment Guidelines
Dr. Thomas Wickizer, College of Public Health, Ohio State University
February 2013
Prepared by the Alaska Department of Labor and Workforce Development
Impact of Medical Treatment Guidelines
Dr. Thomas Wickizer, College of Public Health, Ohio State University
February 2013
Medical Costs
O Prescription Drug Use
Use of opioid narcotics
Physician Dispensing
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
Opioids: The Problem and the Urgency
Dr. Karin Mack, Centers for Disease Control
February 2013
Prepared by the Alaska Department of Labor and Workforce Development
Opioids: The Problem and the Urgency
Dr. Karin Mack, Centers for Disease Control
February 2013
Prepared by the Alaska Department of Labor and Workforce Development
NCCI Report on Opioid Use
November 2011
Prepared by the Alaska Department of Labor and Workforce Development
Opioids: The Problem and the Urgency
Dr. Karin Mack, Centers for Disease Control
February 2013
Prepared by the Alaska Department of Labor and Workforce Development
Opioids in Workers’ Compensation
Workers’ Compensation Research Institute – February 2013
Prepared by the Alaska Department of Labor and Workforce Development
Workers’ Compensation Prescription Drug Study
National Council on Compensation Insurance – August 2011
Prepared by the Alaska Department of Labor and Workforce Development
Workers’ Compensation Prescription Drug Study
National Council on Compensation Insurance – August 2011
Indemnity Costs
O Indemnity Distribution
O Indemnity Frequency
O Indemnity Costs
Prepared by the Alaska Department of Labor and Workforce Development
Alaska Workers’ Compensation Division 2011 Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
2012 NCCI State Advisory Forum
2011 Workers’ Compensation Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
15,000
20,000
25,000
30,000
35,000
40,000
1993 1994 1995 FY97 FY98 FY99 FY00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Nu
mb
er
of
Inju
rie
s R
ep
ort
ed
Alaska Injury Frequency
Prepared by the Alaska Department of Labor and Workforce Development
Alaska Workers’ Compensation Division 2011
Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
Exploring Interstate Variations in Income Benefits
Workers’ Compensation Research Institute – February 2013
Prepared by the Alaska Department of Labor and Workforce Development
National Council on Compensation Insurance
State Advisory Forum - October 2012
Legal Costs
O Legal Costs
O Dispute Litigation
O Formal Proceedings
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
Alaska Workers’ Compensation Division 2011
Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
Reemployment Costs
O Reemployment Costs
O Plan Completion
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
Alaska Workers’ Compensation Division 2011
Annual Report
Prepared by the Alaska Department of Labor and Workforce Development
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FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Reemployment Outcomes
Evaluation Referrals Found Eligible Plan Completed
Take Away... O Alaska’s workers’ compensation premium rates
are among the highest in the nation.
O Alaska’s declining claim frequency rate has kept loss costs down, but the rate of decline has slowed.
O Medical costs are the largest workers’ compensation cost driver in Alaska
O Despite declining disputes, legal costs continue to rise.
O Very few injured workers complete a reemployment benefits retraining plan.
Prepared by the Alaska Department of Labor and Workforce Development
Prepared by the Alaska Department of Labor and Workforce Development
Questions?
A copy of this presentation will be posted to the Division of Workers’
Compensation website, http://www.labor.state.ak.us/wc/
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