Workers' compensation rates are the highest in Alaska in 2012,according to a biennial report from the Oregon Department ofConsumer and Business Services.

Alaska's average workers' comp premium in 2012 is $3.01 per $100of payroll. The state took the most expensive spot from Montana,which dropped to eighth among the study's 51 jurisdictions.

The 2012 nationwide median is $1.88 spent on the coverage per$100 of payroll—a drop from $2.04 in 2010.

The report was cited by two large workers' comp states—Texas andFlorida—but for different reasons.

Texas employers saw a 41 percent decline in workers' comppremiums. The average premium in Texas is $1.60 per $100 of payrollin 2012, compared to $2.38 per $100 of premium in 2010.

The state now has the 38th highest workers' comp premium rates.It was ranked 12th in 2010. Texas has had the most improvement inpremium costs since 2010, according to the report.

The Insurance Council of Texas (ICT) credits the impact of2005's HB 7, which “directly addressed the problems the workers'compensation system faced,” says Steve Nichols, ICT's workers' compmanager, a statement. “The results have been an overall reductionin rates, costs, disputes and claims.”

Another state with a big improvement since the last study isNevada. Here employers now pay $1.33 per $100 of payroll. In 2010the premium rate was $2.13 per $100 in Nevada.

In Florida, the report provides “further evidence that [thestate needs] to be proactive in considering legislative options tokeep rates nationally competitive,” says Kevin McCarty, Floridainsurance commissioner, in a statement.

The commissioner says rates in Florida declined after reforms in2003, but the trend reversed in 2010. Now cost drivers in thesystem are contributing to rate increases.

Florida was the 40^th most expensive state forworkers' comp premiums in 2010. The latest study reveals it is nowthe 29^th most expensive, with an average premium rate of$1.82 per $100 of payroll.

McCarty says the system can be reformed via legislation toaddress drug repackaging and reimbursement costs associated within-patient/out-patient hospital care and ambulatory surgicalcenters.

Washington joins Florida among the states with the most adversedevelopments since the last study. Washington was ranked the26^th most expensive in 2010, but rose to the13^th spot in 2012, with an average premium rate of $2.11per $100 of payroll.

Iowa jumped 11 spots since 2010 to become the nation's25^th most expensive workers' comp state. Idaho is nowranked 19^th, from 29^th in 2010.