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Penalty and Interest

Last update
January 24, 2023

Up to an additional 25% should be included on overdue balances for workers' compensation medical bills in Alaska.

State

Alaska

Late Payment Due Date

30 days

Late Payment Percentage

Penalty: Up to 25%

Interest: (a) Notwithstanding AS 45.45.010, the rate of interest on judgments and decrees for the payment of money, including prejudgment interest, is three percentage points above the 12th Federal Reserve District discount rate in effect on January 2 of the year in which the judgment or decree is entered, except that a judgment or decree founded on a contract in writing, providing for the payment of interest until paid at a specified rate not exceeding the legal rate of interest for that type of contract, bears interest at the rate specified in the contract if the interest rate is set out in the judgment or decree.

Alaska Administrative Code and Alaska Statutes

Sec. 23.30.155.   Payment of compensation. 

8 AAC 45.142. Interest 

Statute or Regulation Text

AS § 23.30.155. (f) If compensation payable under the terms of an award is not paid within 14 days after it becomes due, there shall be added to that unpaid compensation an amount equal to 25 percent of the unpaid installment.  The additional amount shall be paid at the same time as, but in addition to, the compensation, unless review of the compensation order making the award as provided under AS 23.30.008 and an interlocutory injunction staying payments is allowed by the court.  The additional amount shall be paid directly to the recipient to whom the unpaid compensation was to be paid.

8 AAC 45.142. Interest

(b)  The employer shall pay the interest

  (3) on late-paid medical benefits to                  (C) to the provider if the medical benefits have not been paid.

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