Disabled workers in Alaska could keep more income and coverage

Alaska lawmakers are trying to make sure a disability does not turn into a financial free fall for public employees. The bill would raise the monthly occupational disability benefit to 75% of a disabled worker’s gross monthly compensation at the time of disability, up from 40%, and it would fully vest a member in employer contributions when that person is placed on disability.

The measure also reaches beyond the check itself. Disabled employees who qualify for a disability benefit under Alaska retirement law would be eligible for retiree major medical insurance benefits, and some would not have to pay premiums for that coverage if they are not eligible for Medicare.

A broader safety net for the job injuries that linger

The biggest workers’ compensation change is aimed at disability from disease for certain firefighters, giving those claims broader coverage under the proposal. That matters in a profession where the damage from the job can show up long after the emergency scene is over.

The bill is part of a larger package that also touches health insurance and telehealth, and it would repeal the state’s catastrophic illness assistance programs for chronic and acute medical conditions. It builds on a 2022 law package rather than starting from scratch.