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How to combat worker’s compensation fraud

Workers’ compensation fraud costs everyone in California money. However, employers are usually the first victims of this crime. According to the Coalition Against Insurance Fraud, there is a small number of people who actually try to scam the workers’ compensation system, but even a small number of fraudulent claims can create a huge expense. The cost of fraud includes a loss of jobs and pay, more expensive premium costs, closure of businesses and higher prices for consumers.

There are many ways that workers may try to pull off fraud. They could work with dishonest medical providers to get false medical records. A worker may claim an injury that occurred away from work happened at work, or claim an old injury that is flaring up is a result of a work injury, so he or she can get coverage under workers’ compensation. An employee may also fake an injury or claim an injury is worse than it actually is.

Fortunately, there are some ways that employers can fight back against fraud. Most of these things involve being proactive and planning ahead for employees that may try to scam the system. According to MEMIC, some of the things that an employer can do to reduce fraud include installing video cameras, testing for drug use and conducting background checks. Employers should also know the signs of a scam and have procedures in place to handle injuries. In addition, employers can start a safety program and make sure employees understand what workers’ compensation is and how it works. 

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