California family convicted in workers’ comp premium fraud

It’s happened again, and this time close to home – literally. Jerry Buffington, 69, and his Daughter, Cynthia Russell, 47, were caught in an insurance premium fraud scheme and tax evasion, the Central Valley Business Times is reporting. The two individuals were part of the family business, Safehome Inc., where Russell served as the Chief Financial Officer and her...

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Of $12.5 billion dollars, what’s the square root of fraud?

Are you good at math? Because we are. And when we crunch the numbers, it’s not looking good for the workers’ compensation system in California. According to reports at the California Workers’ Compensation Institute, workers’ comp insurers’ paid out nearly $12.5 billion dollars in 2011. That’s right, folks. That’s $12.5 billion dollars to cover expenses for...

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Michigan workers’ comp rates to drop 7.2 percent in 2013

    It’s not all doom and gloom out there. Regulators in Michigan say workers’ compensation rates for businesses in the state are headed for a drop for the second year in a row. According to reports at the Insurance Journal, workers’ compensation rates will drop an estimated 7.2 percent – a much needed break for small businesses that are often burdened...

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Gov. Jerry Brown supports overhaul of worker’s compensation

    A workers’ compensation system that covers 14.4 million employees and is supported by insurance premiums and direct payments from 864,000 employers has picked up an endorsement from Gov. Jerry Brown. In 2010, the system provided medical care and compensation to approximately 530,000 workers who were injured or fallen ill due to their job. The Assembly and...

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Changes in workers’ compensation laws underway in California

Earlier this month, chatter among lawmakers, attorneys, and unions began to multiply following reports that changes in California’s workers’ compensation laws were underway. Worry began to mount panic as lobbyists began to push for changes to pass, while attorneys who represented injured workers petitioned to stop the action. Somewhere in the middle were folks...

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Costs racking up for California hospitals in worker’s compensation claims

A study by the California Workers’ Compensation Institute shows that California hospitals collected twice as many payments in 2010 from workers compensation patients that undergo spinal surgery. While hospitals typically pay 120 percent for medical services to injured workers, in comparison to Medicare patients, they pay even more additional costs for spinal...

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Obesity ups the ante for worker’s comp claims

Findings from a study by NCCI Holdings, Inc, a Florida-based workers compensation ratings and research organization, were released on Tuesday regarding the effects of obesity on workers compensation benefits. The study shows that indemnity benefits paid to obese workers have at least a five-times longer duration than benefits paid to those who are not obese but filed...

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Hospital payments for workers compensation injuries can stack up fast

Workers compensation outpatient payments are growing increasingly in North Carolina hospitals, according to a study by the Workers Compensation Research Institute (WCRI), after an effort a few years ago to reduce these costs. The Early Impact of Outpatient Fee Schedule Reduction in North Carolina: CompScopeTM Medical Benchmarks, 12th Edition, study gives insight on the...

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New York steps it up: The nation is fed up with worker’s comp fraud

New York State has recently begun to crack down on workers compensation fraud. They have already made 18 arrests in 13 different counties. These arrests covered a broad range of fraudulent cases. All of the suspected workers in custody are innocent until proven guilty. People who continued to work after claiming disability; people who faked injuries in order to collect...

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AIG settles with the state of Connecticut in under-reported worker’s comp premium allegations

The American International Group Inc. will give $1 million to the state of Connecticut’s general fund as part of a settlement, the state Insurance Department announced Monday. This compensation towards Connecticut is only a fragment of the $146.5 million multi-state settlement with AIG. The settlement is taking place after allegations that the insurance corporation...

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Small businesses + tax cuts= job creation? Not so fast.

The soaring unemployment rate of 12.5% in the state of California reminds small businesses and employees alike that jobs are few and far between. In spite of adding 186,000 jobs between July 2010 and July 2011, nearly 2.17 million people across the state remain unemployed. This count ignores the ones who have stopped looking for jobs and those who work part-time. In light...

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Four people indicted in California for $17 million scam

For a $ 17 million workers’ compensation insurance overbilling scheme, four people, including a radiologist and a neurologist, were indicted by the Orange County District Attorney’s Office and the Department of Insurance. The prosecution is being represented by Deputy District Attorney Shaddi Kamiabipour of the Workers’ Compensation Fraud Unit. Radiologist Dr. Sim...

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