FEE SCHEDULE NEWS:

• The state has released an updated Official Alaska Workers’ Compensation Medical Fee Schedule effective January 1, 2018.  Conversion factors have been updated for surgery and radiology services.  Inpatient hospital admissions are now paid based on the Medicare Inpatient Prospective Payment System (IPPS). The following materials have been adopted for the new fee schedule:
  • Current Procedural Terminology Codes (2018 edition)
  • Healthcare Common Procedure Coding System (2018 edition)
  • Relative Value Guide (2018 edition)
  • Current Dental Terminology (2018 edition)
  • Resource-Based Relative Value Scale (effective January 1, 2018)
  • Ambulatory Payment Classifications (effective January 1, 2018)
  • Medicare Severity Diagnosis Related Groups (effective January 1, 2018).

REGULATORY ACTIVITY:

• The State of Alaska Department of Labor and Workforce Development Workers’ Compensation Board will meet January 11, 2018.  The meeting will be held at the following location:

Department of Labor Building, 3301 Eagle Street, Hearing Room 208, Anchorage, Alaska. The agenda consists of the regular business of the Workers' Compensation Board and Division, consisting of but not limited to: discussion of issues pertaining to the Alaska Workers’ Compensation Act, and approval of potential changes to regulations.  The Board will also conduct other business as necessary and useful. Public comment will be taken in person or telephonically from 10:15AM to 11:15AM on January 11, 2018, and might be extended to accommodate those present before 10:15AM who did not have an opportunity to comment.  To participate telephonically, call 800-315-6338, access code 92019. Individuals or groups of people with disabilities, who require special accommodations, should contact Alexis Newman at (907) 465-6059 by 4:30 PM, December 28, 2017. Please provide advance notice in order for the Department of Labor and Workforce Development to accommodate your needs. For additional information regarding the Board meeting, please contact the Division of Workers' Compensation at 465-2790.

• The Department of Labor and Workforce Development and the Alaska Workers’ Compensation Board give notice that amended versions of material adopted by reference in 8 AAC 45.083, dealing with fees for medical treatment and services, are in effect. To review the list of publications and materials that were adopted by reference, see the Online Public Notice of Amended Material Previously Adopted by Reference, 2018 and Amended Material Previously Adopted by Reference, 2018 ICD, and the following documents:

• • Public notice of Amended Material Previously Adopted by Reference, 2018.
  • Public notice of Amended Material Previously Adopted by Reference, 2018 ICD.

• Published Bulletins Number 17-04 Minimum/Maximum Compensation Rates for CY 2018; Number 17-05 Death Benefits for CY 2018; Number 17-06 Filing Requirements for 2017 Annual Report, Paying SIF Contributions, and Paying Workers' Safety and Compensation Fees and Number 17-07 Second Injury Fund Contribution Rate for CY 2018.

REGULATORY ACTIVITY:

• Updated the WC forms list.  To view the updated forms list, go to https://labor.alaska.gov/wc/pdf_list.htm.
• Published the WC Board meeting minutes of the January 9-10, 2020 Meeting. To view the minutes, go to https://labor.alaska.gov/wc/wcboard.htm.
• Published amended Bulletin 20-04 regarding the notice of enforcement suspensions from March 31 through June 30, 2020.  The Division of Workers’ Compensation Benefits Guaranty Fund is temporarily suspending collection of penalties for failure to insure and collection of compensation benefits paid by the Benefits Guaranty Fund on behalf of uninsured employees.  In addition, the Alaska Division of Workers’ Compensation Special Investigations Unit will temporarily suspend the pursuit of criminal charges for failure to insure for workers’ compensation liability. To view the bulletin, go to https://labor.alaska.gov/wc/bulletins.htm.
• Published the meeting agenda and claims packet for the May 20, 2020 meeting of Workers' Compensation Medical Services Review Committee.  To view the information, go to https://labor.alaska.gov/wc/med-serv-comm.htm.

LEGISLATIVE ACTIONS:

• Senate Bill 241 This legislation extends the March 11, 2020, governor's declaration of a public health disaster emergency in response  to  the  novel  coronavirus  disease  (COVID-19)  pandemic;  providing  for  a  financing plan;  making  temporary  changes  to  state  law  in  response  to  the  COVID-19  outbreak  in  the following  areas:  standing  orders  of the chief medical officer; occupational  and  professional licensing,  practice,  and  billing;  telehealth;  fingerprinting  requirements  for  health  care providers;  elections  in  calendar  year  2020;  permanent  fund  dividend  applications  and eligibility;  state  tax  filings,  payments,  and  penalties;  corporations;  state  and  municipal government  deadlines;  the  Alaska  regional  economic  assistance  program;  Medicaid  and public assistance; workers' compensation; sanitation standards for retail sellers; actions by the Regulatory  Commission  of  Alaska;  utilities  and  residential  utility  service;  power  cost equalization; forbearance of specified state loans; foreclosures; evictions; wills; repossessions; access  to  federal  stabilization  funds;  seafood  purchase  and  distribution;  homelessness; administrative  hearings;  and  liability  for  issuing,  providing,  or  manufacturing  personal protective equipment.  Effective Date May 18, 2020.

REGULATORY ACTIVITY:

• Published Bulletin 20-04 Notice of Enforcement Suspensions from March 31, 2020 through May 11, 2020 -Emergency Declaration.  Following the Governor’s COVID-19 Disaster Order of Suspension No. 2, issued March 31, 2020, the Workers’ Compensation Division has made several enforcement adjustments to provide temporary relief for businesses who are struggling due to severe economic impacts related to the public health disaster emergency declaration. This does not eliminate an employer’s responsibility to provide workers’ compensation coverage under the Alaska Workers’ Compensation Act (AS 23.30).  To view the bulletin, go to https://labor.alaska.gov/wc/bulletins.htm.
• Issued Bulletin Number 20-05 regarding COVID-19 Presumption of Compensability for Emergency Response and Health Care Employees.  To view this bulletin, go to https://labor.alaska.gov/wc/bulletins.htm.

REGULATORY ACTIVITY:

• Issued Bulletins No. 20-02 through No. 20-04 for information about COVID-19 Virus Guidance. To view the bulletins, go to https://labor.alaska.gov/wc/bulletins.htm.

LEGISLATIVE ACTIONS:

• Senate Bill 61 This legislation will change the amount a vessel owner may be reimbursed by the Fishermen's Fund. Currently vessel owners may be reimbursed the lower of 50% of their protection and indemnity (P&I) insurance deductible or $5,000 per claim. Under this legislation, vessel owners may be reimbursed the lower of 100% of their P&I insurance deductible or $5,000. The department projects that this will increase liability to the Fishermen's Fund by $16,100 per fiscal year. This projection is based on an average for these types of claims filed between FY14 and FY17 of seven claims per year at an average cost per claim of $2,300. Assuming that $2,300 is 50% of the deductible then the total would be $4,600. Under this scenario, the cost increase to the Fishermen's Fund would be $2,300 per claim for a total of $16,100 per year. There is sufficient revenue in the Fishermen's Fund to cover this increased liability. Effective Date December 12, 2019.

REGULATORY ACTIVITY:

• Published Bulletin 20-01 regarding allowances for transportation, meals and lodging while traveling for medical treatment. Regulation 8 AAC 45.084 describes medical travel expenses payable or reimbursable under the Alaska Workers' Compensation Act.  Mileage allowances for use of a private vehicle, meals and lodging are based on reasonable amounts incurred when obtaining necessary medical treatment.  Reimbursable expenses may not exceed the per diem rate paid by the State of Alaska to its supervisory personnel while traveling.  Reimbursement of per diem must be substantiated by receipts.   Effective January 1, 2020, the mileage reimbursement rate when using a privately owned vehicle within Alaska is $0.575 per mile.  See the revised Alaska Department of Administration POV Rate Table.  For out-of-state mileage reimbursement, see the U.S. General Services Administration POV Rate table.   To view the bulletin, go to http://labor.alaska.gov/wc/bulletins.htm.

FEE SCHEDULE NEWS:

• Alaska Workers’ Compensation Division has adopted a new fee schedule and new conversion factors with an effective date of 01/01/2020. The next expected update is January 2021.

REGULATORY ACTIVITY:

• Published Bulletin 19-06 regarding payment for fatalities on or after January 1, 2020, but on or before December 31, 2020. To view the bulletin, to go http://labor.alaska.gov/wc/bulletins.htm  
• Published a notice of a public meeting: The Alaska Workers' Compensation Board will conduct a full board meeting, January 9 -10, 2020. This meeting is open to the public and will begin at 9:00am. The meeting will be held at the following location: Department of Labor Building; 3301 Eagle Street, Hearing Room 208, Anchorage, Alaska. The agenda consists of the regular business of the Workers' Compensation Board and Division, consisting of but not limited to discussion of issues pertaining to the Alaska Workers’ Compensation Act, and approval of potential changes to regulations. The Board will also conduct other business as necessary and useful. To view the notice, go to https://aws.state.ak.us/OnlinePublicNotices/Notices/View.aspx?id=196371

REGULATORY ACTIVITY:

• Published regulatory order number 19-04 regarding approval with modification of the 2020 workers’ compensation loss cost filing and assigned risk rate filing.  To view the order, go to  https://www.commerce.alaska.gov/web/ins/Resources/Orders/Regulatory.aspx.
• Published Bulletin No. 19-05 which contains Workers' Compensation Board's List of Second Independent Medical Examiners in accordance with AS 23.30.095(k) and 8AAC 45.092. To view the bulletin, go to http://www.labor.alaska.gov/wc/bulletins.htm

REGULATORY ACTIVITY:

• Published Bulletin 19-03 regarding a certain percent ownership for individuals to claim exemption and executive officer waivers regarding workers' compensation coverage.  To view the bulletin, go to http://labor.alaska.gov/wc/bulletins.htm.
• Recent adjustments to the Workers’ Compensation Medical Fee Schedule, as recommended by the Medical Services Review Committee, will reduce workers’ compensation system costs by a projected 3.7 percent. The National Council on Compensation Insurance reviewed the 2020 medical fee schedule approved by Alaska Department of Labor and Workforce Development Commissioner Dr. Tamika L. Ledbetter and the Alaska Workers’ Compensation Board at its October meeting in Anchorage. The NCCI did not include these expected savings in its rate filing for 2020, which includes a 14.4 percent reduction in the voluntary market and an 11.3 percent reduction in the assigned risk pool market (subject to approval by the Division of Insurance). Together, the changes will result in lower costs for Alaska businesses that have historically paid high premiums. “For years, workers’ compensation costs were going through the roof, burdening Alaska’s small business community and stretching the resources of the Workers’ Compensation system as a whole,” Ledbetter said. “I am pleased that our efforts to address runaway costs are paying off. I am very appreciative of the members of the Workers’ Compensation Board and the Medical Services Review Board for their diligence in addressing this important issue.” Gov. Michael J. Dunleavy said, “I thank the Department of Labor and Workforce Development, the Alaska Workers’ Compensation Board, and our national partners for their concentrated effort to address the high rate of workers’ compensation costs. Through their efforts, businesses across Alaska can expect to see a significant reduction in cost going into 2020. This is good for business, and good for the Alaska economy.”
• Issued Bulletin 19-04 regarding settlement agreements and attorney fees. This bulletin provides guidance for reporting attorney fees associated with a settlement agreement for a workers’ compensation insurance claim. The Division of Workers’ Compensation has concerns that attorney fees and litigation costs may be lumped in with indemnity benefits rather than being listed as separate categories in some settlement agreements. This guidance is designed to clarify that attorney fees and litigation costs must each be reported separately from other benefit categories such as indemnity benefits. Including the attorney fees in with indemnity benefits on a settlement agreement, will result in a higher Second Injury Fund contribution cost to the employer. To view the bulletin, go to http://labor.alaska.gov/wc/bulletins.htm.

REGULATORY ACTIVITY:

• The Alaska Department of Labor and Workforce Development and the Alaska Workers’ Compensation Board propose to adopt regulation changes in Title 8 of the Alaska Administrative Code, dealing with material adopted by reference and the definition of rehabilitation specialist, including the following:
  • (1) 8 AAC 45.083 is proposed to be amended as follows: Update fee schedule material adopted by reference
  • (2) 8 AAC 45.415 is proposed to be changed as follows: Clarify definition of rehabilitation specialist.

A copy of the proposed regulation changes and the material proposed for adoption by reference is available on the Alaska Online Public Notice System and by contacting Alexis Newman at (907) 465-6059 or alexis.newman@alaska.gov. After the public comment period ends, the Department of Labor and Workforce Development and the Workers’ Compensation Board will either adopt the proposed regulation changes or other provisions dealing with the same subject, without further notice, or decide to take no action. The language of the final regulation may be different from that of the proposed regulation.

• Posted a proposed fee schedule that will become effective January 1, 2020.  To view the fee schedule, go to http://labor.alaska.gov/wc/.