Search
 

Fighting Workers' Comp Fraud

Workers' comp fraud costs Americans more than $5 billion annually, threatens the jobs of Americans, and hurts employers.

By Kevin Lisle | Updated on August 28, 2006

Workers’ comp fraud costs Americans more than $5 billion annually, threatens the jobs of Americans, and hurts employers so much that in some cases, companies go out of business or are forced to move. It adds 10 cents to every dollar of premiums. It’s pervasive, growing, and often very hard to detect.

In the past several years, rising premium rates for workers’ compensation insurance have increasingly pressured both insurers and employers. Despite workers’ comp reform legislation that has been enacted recently in states such as California, across the nation medical costs continue to grow significantly despite a decline in the number of claims filed. In a 2004 study by the National Council on Compensation Insurance (NCCI), the medical share of total benefit costs in workers’ compensation rose to approximately 55 percent on a countrywide basis, with some individual state shares approaching 70 percent.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.