We’re working hard to keep Alaskans safe on the job

Recently, a column by Lynne Curry appeared in the Anchorage Daily News, referencing issues with workers’ compensation claims and COVID-19 treatment.

As the Alaska Workers’ Compensation Division was not contacted for information for the article, I would like to take the opportunity to provide clarity for your readers on how the Alaska’s workers compensation system works. It is a fact that Senate Bill 241 was passed into law, and that it included a “presumption of coverage” for first responder and medical staff employees. This law also included a sunset provision on Nov. 15 of this year.

Does this mean our emergency workers, police and troopers, firefighters and other first responders are not covered by workers’ compensation? Absolutely not. Alaska’s workers’ compensation laws are written to protect employees at work, wherever that work occurs. Alaska Statute 23.30.010 states: “To establish a presumption under AS 23.30.120(a)(1) that the disability or death or the need for medical treatment arose out of and in the course of the employment, the employee must establish a causal link between the employment and the disability or death or the need of medical treatment.” (AS 23.30.130 explains presumptions). This low hurdle has already been proven effective in COVID-19 involved claims, as our numbers show. Many workers’ compensation claims have been filed that would not have been addressed by SB 241. Seafood workers in particular are not addressed in SB 241. The numbers collected by Alaska Division of Workers’ Compensation show that the seafood industry made up 82% of the medical benefits for claims related to COVID-19.

More importantly, COVID-19 has not been as large an impact on workplace injuries as was forecast at the onset of the pandemic. As of December 11, our numbers showed 1,520 claims filed involving COVID-19 treatment. These claims can involve a test only, including negative results, or the entire treatment process including hospitalization.

Alaska shows an infection rate of 5.8%, according to the COVID-19 tracker operated by the Department of Health and Social Services. The Department of Labor and Workforce Development shows in October of 2020, 298,800 nonfarm employees in Alaska. With a total of 1,520 claims related to COVID-19 reported to Workers’ Compensation in Alaska, this places our infection rate for employees at 0.5%. A recent study showed that the prevalence of contracting the virus at work was averaging between 2% and 5% but contact tracing of the study group of over 32,000 hospital employees in Houston, TX showed less than 1% actually acquired the disease at work. Reason given, strict control of PPE usage at work. Studies now show that a higher incidence of contraction occurs away from work as people are less likely to take precautions at the restaurant, home or other location.

In particular I would like to point out that Alaskan businesses are a testimony to our great state. While our numbers show employers paying $385,284.85 in time loss benefits, this is only a fraction of the payroll covered due to time loss or not worked. The Workers’ Compensation Division shows 365 claims out of the total number of 1,520 filed had time-loss benefits paid; no time-loss benefits were recorded in the other 1,155. One might think employees were just left without pay, but the data shows this was not true. While there were 130 denied claims, the majority of the employees with a report of injury due to COVID-19 were quarantined away from work and compensated normally. While Alaska employees were certainly impacted by the pandemic and jobs were lost, those working who contracted the disease were covered either by Workers’ Compensation insurance or directly by their employer.

Businesses all over Alaska are concerned on the effect the pandemic will have moving into 2021. While Workers’ Compensation cannot forecast the impacts, we can state that no effect will be felt in workers’ compensation insurance premiums. Premium rates will decrease by an average of 14.9% from 2020 rates. Alaskan Workers’ Compensation rates have declined 46% since 2015, and 2021 will mark the eighth consecutive year of decrease. The Department of Labor and Workforce Development continues to monitor, educate and support businesses operating in Alaska to ensure worker safety. Our efforts have made Alaska a safer and more profitable location to work.

Charles Collins serves as director of the Workers’ Compensation Division of the Alaska Department of Labor and Workforce Development.

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