Consider putting anti-fraud language on the back of each check that states cashing a check they are not entitled to can result in severe consequences including prison. This puts claimants on notice that misrepresenting their employment status or eligibility to workers’ compensation benefits can have severe penalties.
Some states mandate this. But if your state does NOT mandate this, there’s probably no reason you can not include this in your anti-fraud program. Check with your corporate legal counsel to make sure. Ask your TPA if other clients in your state do that — I bet they do! Rhode island, for example, has a great fraud brochure. The state mandates insurers and self-insured employers notify claimants of the effect of their endorsement of a benefit check by sending the Notice to Employees Regarding the Effect of Endorsement of Benefit Check Form (DWC-32) http://www.dlt.ri.gov/wc/fraud_fraud.htm Click Report Fraud. The Rhode Island Fraud Brochure is excellent.
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“The 5Cs to Taking a Bulletproof Injured Worker Recorded Statement”
The Rhode Island language is: “I understand that endorsement hereon or deposit to my accounts constitutes my affirmation that I am receiving these workers’ compensation benefits pursuant to law, that I have made no false claims or statements or concealed any material act, in order to receive said benefits and that doing so would make me liable for civil and criminal penalties, including jail.”
The language below is an example of similar language in another state: “By endorsement of this check, the payee, under penalty of fine and/or imprisonment, certifies entitlement to the payment for benefits or services, circumstances affecting such entitlement have not changed and no false statements or representations have been made in support of the claim of payment. False representation could result in civil or criminal penalties.” If you are not currently doing this contact your broker, TPA or consultant to ask them how to make this change.
Author Robert Elliott, executive vice president, Amaxx Risk Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. See www.LowerWC.com for more information. Contact: Info@ReduceYourWorkersComp.com.
WORK COMP CALCULATOR: http://www.LowerWC.com/calculator.php
MODIFIED DUTY CALCULATOR: http://www.LowerWC.com/transitional-duty-cost-calculator.php
WC GROUP: http://www.linkedin.com/groups?homeNewMember=&gid=1922050/
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
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