New York State is second in the nation, only behind California, for questionable workers’ compensation insurance claims. The Empire State jumped to the second place in 2012 from fifth in 2011, the New York Insurance Association noted.
“Workers compensation insurance fraud is a serious problem in New York,” Ellen Melchionni, president of the New York Insurance Association, said. “Fraud drives up workers compensation rates. The state and insurance industry need to remain vigilant in cracking down on those looking to cheat the system.”
The National Insurance Crime Bureau (NICB) analysis shows that the number of New York’s questionable claims reported in 2012 was more than double the questionable claims reported in 2011. There were 344 reported in 2012 versus 161 in 2011.
The NICB analysis also shows that in New York State, questionable claims in 2013 are on pace to exceed the 2012 figure. According to data available for the first half of 2013, 183 questionable claims were reported in the state between January and June.
“The growing rate of questionable workers compensation claims is alarming,” Melchionni said. “Fraud takes away from workers compensation serving its intended purpose of protecting injured workers.”
Source: The New York Insurance Association