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Insurance & Workers’ Compensation Investigation
Alaska businesses face one of the highest insurance premiums for workers’ compensation coverage in the nation. AIA specializes in providing investigative services designed to help businesses navigate the complexities of workers’ compensation insurance. With rising medical costs and a unique economic landscape, managing workers’ compensation claims is essential for reducing business expenses.
Background on Workers' Compensation in Alaska
Mandatory Coverage: Every Alaska business with employees is required to carry workers’ compensation insurance. This mandatory expense can be significant, particularly for small businesses, family-owned operations, and startups.
Rising Medical Costs: In 2011, Alaskan businesses reported spending 76% of every dollar allocated for workers’ compensation benefits toward medical costs—not lost wages or retraining benefits. This figure is concerning given that Alaska’s median household income consistently ranks among the top five in the nation.
Higher Medical Costs: The cost of medical benefits in Alaska consumed approximately 30% more of workers’ compensation benefits compared to the national average. With rising medical costs across the United States, Alaska’s businesses are uniquely impacted by these trends.
Projected Trends: In 2012, it was predicted that Alaska would hold the No. 1 position for the highest workers’ compensation insurance rates in 2013. The rising medical costs are expected to continue to increase the financial burden on Alaskan businesses.
Significant Concern for Businesses: A critical concern for Alaskan businesses is that $3 out of every $4 spent on workers’ compensation is currently allocated to medical benefits. This significantly impacts the overall cost structure of workers’ comp insurance for businesses in Alaska, which may face more challenging financial pressures than their counterparts in the lower 48 states.
How we will help:
AIA’s team helps businesses understand and manage their workers’ compensation insurance by investigating claims to identify inconsistencies, prevent fraudulent activities, and ensure fair treatment for both employers and employees. We also offer services to help businesses review payroll records and understand their Experience Modifier (MOD), which directly impacts insurance premiums.
Why Choose Us:
With the unique challenges that Alaska businesses face in regard to workers’ compensation, AIA provides expert guidance and investigative services to help businesses reduce unnecessary costs. We assist in lowering insurance premiums, identifying discrepancies in claims, and optimizing workers’ compensation policies to ensure businesses are paying only what they are required and no more.