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Little Fraud by Workers Found in Workers’ Compensation Claims

Little Fraud by Workers Found in Workers’ Compensation Claims

The attached article from an insurance journal discusses fraud in workers’ compensation. The author tells how “certain schemes and scenarios are addressed, another pops up elsewhere, costing insurers and employers more than $7 Billion per year, according to the National Insurance Crime Bureau.”*

The fraud discussed is not fraudulent workers’ compensation claims, but fraud perpetrated by medical providers; in fact, fraudulent workers’ compensation claims are almost nonexistent.
Job injury claims are down and workers compensation insurance carriers’ profits are soaring. A study conducted in 2000 showed that only 1-2% of workers compensation claims filed in the United States are fraudulent. That means that conservatively speaking, well over 95% of all workers compensation claims are legitimate.

Moreover, less than 40% of legitimate workers comp claims are even filed, and more than 90% of job-related illnesses go uncompensated.

The FACT is that most workers compensation claims are never reported and hundreds of valid claims are denied by insurance carriers in an effort to protect their bottom line, at the expense of the injured worker and their families, and there is a reason for the absence of fraudulent workers comp claims.

In Alabama, did you know that an injured worker receives NOTHING-Nada-$0-for the first three days they miss from work. On day 4 they begin receiving 2/3rds of their average weekly wage-meaning that if your average weekly wage is $100 you will receive $66.67 from workers comp. If the injured worker misses 21 days of work, then they are entitled to receive workers comp benefits for the first 3 days of work they missed. No one sane thinks that lying to get workers comp benefits will lead to the good life.

In Alabama, the amount an injured worker is entitled to receive while off work recovering from a job injury is capped at 2/3rd of their average weekly wage. This may seem o.k., until you realize that Alabama Power, your mortgage holder and everyone else expects you to pay 100% of your bills.

Moreover, the amount an injured worker can receive for a permanent scheduled injury is capped at $220 a week. Did you know that in Alabama, if you lose both arms below the shoulder, the maximum amount of compensation you are legally entitled to receive is $220 a week for 400 weeks? That is less than the federal minimum wage.

Our clients didn’t want to get hurt at work; suffering a job injury was not something they concocted in order to “live the good life.” They really just want to get better and return to work so they can provide for themselves and their families.

If you have suffered a work-related injury and you have questions about your right to Alabama Workers Compensation benefits, don’t hesitate to contact and speak with one of the experienced Alabama Workers Compensation attorneys at Powell and Denny today.

Powell and Denny: We Work When You Can’t

Offices in Birmingham, AL and Huntsville, AL

Alabama Workers Compensation Attorneys

Birmingham Workers’ Compensation Lawyers

Huntsville Workers’ Compensation Attorneys

Powell and Denny have been selected as one of the Best Law Firms by U.S. News and World Report for each of the last 6 years, have been selected as one of Birmingham’s Top Lawyers by B-Metro Magazine for the last 3 years, have been selected by The National Advocates as one of the Top 20 Workers’ Compensation Firms (plaintiffs) and Powell and Denny, P.C.-has been selected as one of the “Best of the Best” law firms by The American Registry.
Mr. Denny is AV rated by Martindale Hubbard (the highest rating possible) and Mr. Powell has been rated as Superior by The National Registry

Little Fraud by Workers Found in Workers’ Compensation Claims

* The NICB is not affiliated with any governmental entity

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