In Alaska, worker's compensation issues are administered by the Alaska Department of Labor and Workforce Development, Division of Workers' Compensation. The Workers' Compensation Division is the bureaucratic arm of the Workers' Compensation Board. The basic purpose of the Board and the Division is to be certain that any Alaskan workers who has disease or injury directly attributable to their work are assured of medical treatment and benefits in cash payments during the time they are unable to work. The benefits are to be paid through the employer or by the insurance companies for the employers. The Workers' Compensation Board holds hearings and can relay Board decisions through formal orders.
Since 2005, the Workers' Compensation Appeals Commission has been in place to hear appeals from the decision of the Workers' Compensation Board should an employee wish to proceed with an appeal to the Board decision.
Four major types of reimbursements come under the general heading of workers' compensation in Alaska. The first grouping is the major workers' compensation program that forces the employers in Alaska to be responsible for workers medical costs and part of the lost income if the employee becomes injured or ill due to conditions on the work site. If an employee dies while on the job or due to job site conditions, the benefits go to the dependents.
A second type of compensation handled through the Division of Workers' Compensation is the Second Injury Fund. This is a secondary source of funding for employers who have paid out compensation for certain selected types of employee claims. It partially reimburses employers for payments made to employees with pre-existing conditions who are injured on the job. This category of claimants may fall under the auspices of the Americans with Disabilities Act, so sensitivity to legal issues is important, particularly during the hiring and interview process.
A third type of benefits in Alaska provides for the vocational rehabilitation of workers who have been injured or disabled on the job to a level where a different type of work is appropriate. Certain types of on-the-job training or of other career training opportunities can be available in certain situations. For example, someone who has been injured on a job that is highly physical may be able to obtain training to fit them for other types of more sedentary employment.
Finally, the Fishermen's Fund is a type of workers' compensation for licensed commercial fishermen who are injured or become ill because of activities related to fishing. This can be either in Alaskan fishing waters or onshore while in Alaska.
Alaska's workers' compensation claims cost less in 2006 than in 2005. This is due in part to fewer claims, but also reflects a drop in legal expenses, indemnity benefits, and reemployment benefits. Only medical expenses showed a rise in 2006 over the same category in 2005. In looking at the makeup of the claims filed in the year 2006, nearly seventy percent were claims which caused no time loss from the job. Fewer than .1 % were job related fatalities. Most types of injuries shows a reduction in number since the year 2005.
Alaska employers have the choice of being self insured, using a insurance company or becoming part of the assigned risk pool, but are required to provide workers compensation benefits to employees based on the statewide rate.
Certain types of jobs are more risk prone than others, and as would be expected, these jobs have a higher workers' compensation coverage rate for the employer. If the worker receiving benefits through Alaska Workers' Compensation resides elsewhere, Alaska may apply a Cost of Living Adjustment to the benefits received by the employee.
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