Alaska judge rules in state’s favor on repeal of a rule intended to limit health care costs

An Anchorage Superior Court judge’s ruling has cleared the way for the state of Alaska to repeal its “80th Percentile Rule,” enacted by the state in 2004 as part of an attempt to reduce health care costs in the state.

The Dunleavy administration repealed the rule in 2024, saying it was counterproductive and argued it contributed to higher health care costs. Medical providers say that isn’t true and that repealing the rule will cause some clinicians to close down.

In 2023, a group of medical providers sued the state , alleging problems with the process used to repeal the rule. On Aug. 27, following a four-day bench trial in February, Judge Yvonne Lamoureaux ruled in favor of the state .

In her findings of fact and conclusions of law, Lamoureaux concluded that the repeal was not