Home > Uncategorized > Workers Comp Fraud is Alive and Well

Workers Comp Fraud is Alive and Well

Perception is reality until proven otherwise, and when it comes to fraud in the workers’ compensation system there is the perception that employee fraud is widespread and costs are up because of employee fraud.

This is why Morrison Investigations investigates FRAUD committed by employees claiming workers compensation injuries.

A Travis County district court sentenced a Laredo man on workers’ compensation fraud-related charges. The court ordered Jose Perez to serve 60 days in jail and repay $7,388 in benefits to Texas Mutual Insurance Company.

Perez reported a job-related injury while working in the shipping and receiving department of a Brumley Professional Employer Services client company. Perez claimed he was unable to work as a result of the injury, and Texas Mutual began paying income benefits to him.

Meanwhile, Texas Mutual uncovered evidence that Perez was working at a distribution center in Laredo.

Investigators call this type of scam double-dipping, because the claimant collects benefits for being too injured to work when he or she is, in fact, gainfully employed. Texas law requires claimants to contact their workers’ comp carrier when they return to work. Left unchecked, double-dipping and other workers’ comp fraud can lead to higher premiums for all Texas employers.

About Texas Mutual Insurance Company
Austin-based Texas Mutual Insurance Company is the state’s leading provider of workers’ compensation insurance. Since 1991, the company has provided a stable, competitively priced source of workers’ comp insurance for Texas employers. Texas Mutual maintains three teams of in-house fraud investigators. In 2009, they saved, identified or recovered $16 million through their claimant, health care provider and employer fraud investigations.

*SOURCE: Texas Mutual Insurance Blog.

Categories: Uncategorized
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