New York State Insurance Fund: Anti-Fraud Efforts Saved $20.7M

New York State insurance Fund (NYSIF) Executive Director David P. Wehner said the NYSIF’s 2008 fraud prevention program accounted for more than $20 million in total savings — a record amount exceeding all prior yearly totals since the program began.

“We are determined to continue an aggressive attack against workers’ compensation fraud in New York State,” Wehner said. “NYSIF has emerged as an industry leader in fighting fraud based on a methodical approach to building solid cases through the efforts of our policyholder, claims and investigative teams in cooperation with a number of other New York State agencies and law enforcement authorities.”

The total savings includes cash restitution of approximate $1.6 million and estimated future savings of more than $19 million, resulting from additional premium, lower reserves and forfeiture of future payments on fraudulent claims.

Total savings for 2008 surpasses all prior yearly totals, as does the amount of cash restitution collected since NYSIF began reporting data on fraud arrests in 1994.

“This is a significant plus for NYSIF and for the State of New York at a time when every penny counts,” Wehner said. “Reducing fraud in the workers’ compensation system benefits all honest businesses, working people and consumers.”

In 2008, NYSIF cases led to 148 arrests. Since 1995, the fund’s anti-fraud efforts have accounted for a total of 1,228 arrests, and an estimated savings of $166.5 million.

“The Workers’ Compensation Board has been proud to partner with NYSIF and the Insurance Department to fight and prevent fraud,” Workers’ Compensation Board Chair Zachary S. Weiss said. “This cooperation is smart government and will lead to further savings and confidence in the system as a whole.”

Added New York State Insurance Superintendent Eric Dinallo: “Workers’ compensation fraud is a serious crime victimizing hundreds of thousands of honest New York taxpayers and businesses forced to shoulder the burden of higher premiums. The Insurance Department’s Frauds Bureau is committed to continuing its aggressive anti-fraud efforts and working with the Insurance Fund and the Workers’ Compensation Board Fraud Inspector General in a determined effort to combat all forms of workers’ comp fraud.”
__

Source: NYSIF