The Alaska Workers Compensation Divisions’ 2021 Annual Report (released on October 24, 2022, but not yet posted online) shows alarming trends for injured workers.
More Controversions
There were 3,605 total controversions filed in 2021, a 24.9% increase from 2020. Contoversions is the formal process by which insurance companies deny benefits to injured workers. This number does not include all the cases in which the insurance companies fail to report the benefits that were denied or withheld.
More Aggressive Legal Tactics
While insurance companies paid employee attorneys less in 2020, they paid their own attorneys more – another factor that would explain increased profits. Employers paid employees attorneys 4.3 million, a 30.8% decrease from 2020. Employers paid their own attorneys 7.2 million, a 11.86% increase from 2020.
Employees Fighting Back Less
The statistics suggest that employees are fighting back less than in previous years. There were 678 claims for benefits filed in 2201, a 6.7% decrease from 2020.
There were 161 hearings in 2021, decreased from 188 hearing in 2020 and 225 hearing in 2019. That’s a 28% decrease in hearings over those two years. The decrease in payment of employee attorney fees supports this conclusion.
Less Benefits = More Insurance Profits
Not surprisingly with the increase in controversions, insurers saved more in profits. Total benefits paid in 2021 were 188.2 million, a decrease of 8.28% from 2020.
Follow the Money
The reason insurance companies deny injured workers benefits is to improve their profits. The aggressive use of insurance attorneys coupled with increased controversions have led to increased profits.
What Are Your Rights? Find Out Now
You don’t need to wait until your claim is controverted to speak with an attorney. Find out your rights are and what you should be looking out for.
Keenan Powell has practiced Workers Compensation law in the State of Alaska for over 35 years and has dedicated her practice to Workers Compensation representing injured Alaskans handling hundreds of cases. www.keenanpowell.com
All consultations are free.
To make an appointment (in person, telephonic, or zoom), email: keenan@keenanpowell.com or call: 907 258 7663.