California Workers’ Comp Insurance and Preventing Fraudulent Claims

In 2012, California lost more than $342 million due to workers’ compensation fraud—and these are just the reported cases. The California Department of Insurance believes that some fraud cases have fallen under their radar. Kincade points out that these losses may be preventing workers from receiving salary raises and fair compensation.

In 2011, more than 5,000 suspected fraudulent claims were reported to the California Department of Insurance. Around a quarter of these claims evolved into full-blown cases, and approximately 15 percent of the claims resulted in arrests. Nationwide, the federal government loses an estimated $5 billion to fraudulent claims every year—making it the second costliest crime in the country, next to tax evasion.

http://omegaondemand.com/california-workers-comp-insurance-preventing-fraudulent-claims/