Will new Michigan anti-fraud unit investigate employer and insurance company fraud?
Gov. Rick Snyder has established a new anti-fraud unit within the Department of Insurance and Financial Services. It will investigate claims of fraudulent activities, share information with other law enforcement agencies, and collaborate to prevent future occurrences. Claims under the Worker’s Disability Compensation Act of 1969 (WDCA) are specifically included in its jurisdiction.
Many people assume that injured employees commit the most amount of workers’ compensation fraud. It does not help that high-profile fraud cases make sensational news and receive the most attention. The truth is that employers and insurance companies are huge drivers of fraud.
Issues such as employee misclassification and premium fraud are ignored by the media. Bad employers intentionally misclassify employees as independent contractors to avoid taxes and paying for workers’ compensation insurance. Employers commit premium fraud by under-reporting the number of workers employed or misrepresenting the type of work.
Workers’ compensation insurance is supposed to pay for medical care and lost wages. Insurance companies commit fraud when biased doctors are used to cut people off. Millions of dollars in medical and wage assistance are shifted to taxpayers when valid claims are denied.
We hope this new anti-fraud unit also investigates employers and insurance companies who break the rules.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 201-9497 for a free consultation today.
Photo courtesy of Creative Commons, by Collection Agency.