The Department of Administrative Services through Gallagher Bassett Services (Third Party Administrator) Special Investigation Unit maintains a Fraud Hotline to report potential workers’ compensation fraud by state employees. All discovered materials on reported fraud cases are then reported to the State of Connecticut Chief State’s Attorney Workers’ Compensation Fraud Control Bureau for review.
Workers' Compensation Fraud is a Crime.
If the benefits obtained through fraud exceed $2,000, the offense is a Class B felony punishable by up to 20 years in prison and/or up to $10,000 in fines.
Workers' compensation fraud is a widespread concern throughout the industry. The National Insurance Crime bureau rates fraud as the second-most costly white-collar crime in America behind tax evasion. It can happen in many forms, some examples are:
- Staging accidents
- Physicians who bill for not rendering treatment
- Injured workers who collect temporary total benefits for their state job yet work another job