Efforts to combat workers’ compensation fraud at the New York State Insurance Fund (NYSIF) have resulted in a surprising $20.7 million in savings. This impressive amount dwarfs all prior yearly totals since the fraud program was started.
NYSIF has collected data on its fraud efforts since 1994. In 2008, there were 148 arrests, cash restitution of $1.6 million, and an estimated future savings of over $19 million. The future savings can be attributed to additional premiums, lower reserves, and the fact that NYSIF won’t have to pay for those fraudulent claims it uncovered any longer.
Last year’s arrests brings the total to 1,228 since 1995, and as a result the NYSIF has saved about $166.5 million total. The fraud-fighting efforts are the result of a successful collaboration between the NYSIF, the Workers' Compensation Board, and the Insurance Department.
These fraud efforts are important, as unchecked fraud means that honest businesses end up shouldering the cost in the form of increased premiums, and honest injured workers end up with fewer benefits.