Preventing Workers Compensation Fraud

Cheaters commit an estimated $5 billion in workers compensation fraud each year. These losses must be covered by employers, who inevitably have to pass them to consumers in the form of higher prices. Fortunately, all employers can take action to reduce the risk of workers compensation fraud:

Know the three most common forms

False claims –Deception about the cause of illness or injury, such as a claim that an off-the-job injury occurred at work. Other forms include exaggerating the effects of an injury or illness, and collecting claims while continuing to work.

Provider fraud – Deceit by a health provider who prolongs treatment or provides unneeded care in order to bill for services, or provides treatment not related to the workers compensation claim.

Premium fraud – Deception by an employer who pays less than required under state law by falsifying records.

Take these steps for fraud prevention

1. Discuss your firm’s workers compensation policies with all employees, including the procedures for reporting injuries and filing a claim, and potential penalties for fraud.

2. Fully investigate all mishaps, including the cause, severity and injuries or illnesses suffered.

3. Follow up with employees who have been injured, asking about progress and recovery time. You can express genuine concern while keeping tabs on the employee’s ability to return to work.

4. Consider a return to work program that helps employees return to part-time duties as they recover.

Desert Empire Insurance can help you with your commercial insurance needs in the Palm Desert area. Learn more by contacting us.