Massive Comp Fraud Exposed

Seven arrested in Florida

  • Investigators in Florida uncovered a massive workers’ compensation
  • Investigators were sent in to address unlicensed contractors who are working without the required contractor license.
  • The men were also engaging in construction class work without the required workers’ compensation insurance exemptions.
  • When the investigation concluded, seven men were arrested for failure to obtain workers’ compensation coverage and unlicensed contracting.

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Duct tape leads to fatality

  • Great Lakes Polymer Technologies LLC, a Kansas plastics manufacturer, failed to make sure the required safety procedures were followed, leading to the death of a worker.
  • The employee suffered fatal injuries when he became entangled in a rotating part inside a bagging machine while trying to clear a jam, a federal workplace safety investigation found.
  • Investigators found that duct tape over the safety interlock prevented the machine from shutting down. The victim was caught by the machine and pulled into its rotating bars.
  • OSHA proposed penalties of $292,421 after the agency previously cited the company for similar violations at the facility.

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Aging workforce will affect workers’ comp claims

  • Workers’ claims are at their lowest levels in more than five years in some places.
  • However, an aging workforce is predicted to file more costly claims in the future.
  • New claims are being filed for cumulative trauma injuries that are the result of performing repetitive physically and/or mentally demanding tasks over long periods of time.
  • As the workforce ages and there are a higher proportion of older individuals, these types of injuries will likely become more prevalent and more expensive.

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Ohio public employees to pay less for coverage

  • Ohio’s public employers will pay nearly $17 million less in workers’ compensation insurance premiums next year because of the rate cut that went into effect last year.
  • This 10% rate reduction was made possible by declining injury claims and relatively low medical inflation costs by Ohio’s counties, cities, public schools, and other public taxing districts.
  • This rate reduction marks the 13th rate cut for public employers since 2009. There have also been 11 rate reductions since 2008 for private employers.
  • The actual premium change for an individual public entity will differ based on multiple factors, including employer type or classification, payroll levels, and recent claims history.

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