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Alaska moves to cap what workers' comp pays for creams and patches
Alaska wants to put a ceiling on what workers' compensation pays for prescription creams and patches — after regulators saw over-the-counter products and minor tweaks to a formula billed at hundreds or even thousands of dollars.
Under a draft fee schedule released this week, reimbursement for a topical cream, whether prescribed or bought over the counter, would be capped at $30 a month. A medicated patch would top out at $70 per month's supply, and a compound cream mixed to order for a single patient at $240. There's no cap today.
The change wouldn't hit injured workers directly. Under state law, a worker doesn't pay for treatment tied to an injury the insurer has accepted as work-related, so the caps govern what insurers reimburse providers — not what patients owe. What drove the proposal was the billing: the committee that developed the caps flagged "instances where over-the-counter products or minor formulation changes resulted in charges of hundreds or thousands of dollars."
The proposal would also end automatic refills — each fill would require a new prescription — and tighten a handful of other drug rules in the same cost-cutting direction.
The caps came out of a state review committee, which includes members who don't work in health care, over a series of summer meetings that compared Alaska against six other states. At those meetings, the two sides of the tradeoff showed up: a pharmacy-benefit manager told the committee that caps have cut costs in other states without creating known access problems, while a representative of the Alaska Chiropractic Society warned that some providers and equipment suppliers might stop offering services if reimbursement falls too low.
The state hasn't put a number on it. Neither the proposal nor the committee's report says how much the caps would save, or how many Alaska claims even involve a topical drug.
Written comment is open through Oct. 9, and an oral hearing is set for Oct. 15 in Anchorage, with call-in options. After that, the board can adopt the changes, alter them, or drop them.
Source: Alaska Department of Labor and Workforce Development, Alaska would cap what an injured worker's topical drug is worth at $30 to $240 a month, and end automatic refills. Comment closes 9 October ().
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Primary sources (10)
NOTICE OF PROPOSED CHANGES ON WORKERS COMPENSATION FEES FOR MEDICAL TREATMENT AND SERVICES
Public notice21h ago
NOTICE OF PROPOSED CHANGES ON WORKERS COMPENSATION FEES FOR MEDICAL TREATMENT AND SERVICES
Public notice1d ago
Workers' Compensation Medical Services Review Committee
Document1w ago
Report of the Medical Services Review Committee
Document1w ago
Medical Services Review Committee & Workers’ Compensation Board Public Meeting Packet August 28, 2026
Document1w ago
Medical Services Review Committee Meeting Minutes
Minutes1mo ago
Untitled source
Public notice5mo ago
Official Alaska Workers’ Compensation Medical Fee Schedule
Document5mo ago
Clarification on the Effective Date of the 2026 Alaska Workers' Compensation Medical Fee Schedule and Materials Adopted by Reference
Document5mo ago
2027 Alaska Workers’ Compensation Medical Fee Schedule
Public noticeDate not recorded
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