Workers’ compensation fraud in the news

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Looking back at fraud cases from December 2015 and why it is not what most people expect.

fraud1People think employee fraud is the largest problem in workers’ compensation today. Special interest groups use this narrative to “reform” the system for their gain.

We thought it would be interesting to look at some of the higher profile fraud cases from last month and give some additional perspective.

A much larger problem is employee misclassification and underreporting. This type of premium fraud runs into the millions and results in higher overall insurance costs. We typically see this occur when employees are called independent contractors.

Beverly Hills Patch has a story about a janitorial company contracted to service luxury hotels. It is alleged that owners concealed the existence of hundreds of hotel workers to avoid paying millions of dollars in insurance premiums. Employees did not get workers’ compensation benefits and feared retaliation if they reported injuries.

Medical providers also commit fraud when billing for services that are not actually performed. This has serious financial and personal costs.

KABC-TV Los Angeles has reported that several people have been charged with fraudulently billing of more than $24 million in workers’ compensation claims. Medical offices allegedly contracted with interpreters to perform unnecessary translation services. One translator had $422,000 in charges despite being incarcerated for the entire period of time.

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 (855) 221-2667 for a free consultation today.

Related information:

Our 2 cents on insurance company fraud

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Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.