loyee. Also, I think that business owners should be required to attend seminars regarding not only effective claimant fraud management, but also the consequences of corporate fraud. This would all be part of a sweeping reform of the Workers’ Compensation industry, adding more emphasis on publicizing the problem of fraud and its consequences.How does this affect the common man? Consider the trickle-down effect of workers’ compensation fraud. Insurance companies pass on the costs of fraud to employers in the form of higher premiums. This is also one of the major motivations that an employer has to commit fraud. These employers in turn pass on the costs to consumers for goods and services. Employers who cannot afford the costs are sometimes forced to move to a state with lower compensation premiums, taking valuable jobs away from states that need them. Employers that do not carry workers’ compensation coverage operate their businesses with a lower overhead, giving them the opportunity to underbid businesses with the proper coverage. Uninsured employers can run honest employers out of business, again resulting in loss of jobs. Workers’ compensation fraud is a valid concern that affects every working person, either directly with the stigma that is attached to filing a claim, or with the indirect effects of job losses and higher insurance premiums (Alden)....
