We’ve all seen the statistics, Workers’ Compensation fraud continues to rise. It’s estimated that 10% of all claims involve some form of fraud or benefit abuse. That translates into nearly $34 billion dollars paid annually for fraudulent Workers’ Compensation claims. Obviously, the best way to control costs is to control the number of claims with a strong safety program. However, when injuries do occur, company-wide fraud awareness helps to reduce dollars spent unnecessarily. Three Steps for Reducing Fraud
Step 1 – Create a written policy regarding fraud
Have written policies and procedures that make it clear to employees you will not tolerate any abuse of the workers’ compensation system.
Step 2 - Post Signs
Post signs throughout your organization about fraud awareness and how employees can report fraud. Employees are an excellent source for detecting fraud.
Step 3 – Educate your employees
Train your staff on how to detect fraud and how to report it.
(See: Fraud Indicators)
Hold meetings and include topics on fraud and its impact on the financial health of the company. Let them know the harm that fraud causes them and the company.
Make sure your Workers’ Compensation carrier claim unit has procedures for investigating, prosecuting, and seeking recovery from overpayment, or benefits received fraudulently.
Report any suspected fraud immediately. The earlier the claims representative is aware of potential fraud, the better the opportunity of detection.
