Fraud Report Finds Slight Rise in 2021 Comp Claims

Wednesday, March 23, 2022 | 0

New York State Inspector General Lucy Lang on Tuesday released the 2021 Workers' Compensation Fraud Annual Report, publishing results on work comp claims and fraud investigation results last year.

With New Yorkers beginning to come back to the job, new workers' compensation claims rose slightly in 2021 but continued to be reported at more than 18% lower than pre-pandemic levels, according to the report.

Additionally, while courts across New York state reopened in 2021, a significant backlog caused by closures during the pandemic resulted in the limitation or delay of criminal proceedings and the presentation of new cases to grand juries by district attorneys throughout the state, the report states.

Investigations conducted by the IG's office led to criminal prosecutions resulting in seven arrests, including one involving a provider/professional matter, four involving employer matters and two involving claimant matters.

Additionally, through completed prosecutions in 2021, the IG’s investigations facilitated the recovery of hundreds of thousands of dollars in fines and orders of restitution for New York State agencies, insurers including the New York State Insurance Fund and private insurers, and self-insured employers that were the victims of workers' compensation fraud.

In 2021, the IG's office received 1,118 fraud complaints in total and dismissed 492 matters as unsubstantiated.

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