Workers Compensation Claim Fraud Fact or Fiction
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One only has to tune in to the news or news program to begin hearing about the "crisis" involving fraudulent Worker's compensation claims filed by employees. The U.S. Department of Labor reports that Worker's Compensation costs are growing faster than any other cost. Some statistics reveal that 10% of all workers' compensation claims are fraudulent. Other estimates put this figure at approximately 37% of all workers' compensation claims (Corporate Health, 2003). Reports indicate this fraud is a widespread problem, putting a company's profitability in peril, and personal injury claims are "on the rise due to the lure of large sums of money to be made from filing fraudulent claims" (Testing, 2003). The reports sound credible and the statistics look believable, but what is the truth about the number of fraudulent worker's compensation claims and the impact felt by companies? By examining three statistics of percentages paid by employers for this insurance, actual claims filed and benefits awarded to claimants, it should be revealed that no one is losing or gaining from worker's compensation.
The first statistic includes some background and current figures...