Welcome! Login | Register
 

Fresh Local Food for Thanksgiving in Central MA—This Thanksgiving, get out to your local farm…

Friday Financial Five: November 21 2014—Home buying fence-sitters may view this as the…

Revolution-Red Bulls Prepare For Eastern Conference Finals—The Revolution and Red Bulls will kickoff the…

MA Added 1,200 Jobs in October of 2014—Massachusetts added 1,200 jobs in October of 2014

Finneran: Gronk!—GRONK. What a word. What a sound. What…

The Cellar: 2 Great Values—Whenever someone asks me to recommend a delicious…

See ELF the Musical On Stage at The Hanover Theatre with Your WOO Card—The weekend is fast approaching, and GoLocalWorcester brings…

NEW: Patriots Bring Back Blount—Patriots Re-Sign running back LeGarrette Blount

5 Takeaways from Brown vs Holy Cross—Holy Cross beats Brown 80-65

Claim Your Assets this Year with Unclaimed Property Division—SPONSORED CONTENT SERIES: Every Thursday, GoLocal will be…

 
 

Illegal Benefits Costs Massachusetts $330 Million

Wednesday, March 14, 2012

 

Massachusetts issued in excess of $329,000,000 in improper insurance payments between July 2008 and June 2011, according to data released by the Department of Labor.

During the last fiscal year of the three-year period, 62% of these illegal payments were the “responsibility of the claimants.” The second leading factor for improper payments was “employers” at just 12%.

The leading root cause of the overpayments in the Commonwealth – accepting payments even after returning to work – is the cause of 50% of the illegal payments. The second largest root cause of illegal payments was that the claimant lied about what their salary had been to increase their benefits.

Massachusetts Ranks in New England

While the total dollars of illegal payments was $329,925,736 in Massachusetts, the percentage of total improper payments was 5.06%. How did this rank in comparison to the other New England States?


Enforcement

The Massachusetts Department of Labor reports that, “in Fiscal Year 2010, the Insurance and Unemployment Fraud Division’s prosecutions and casework obtained over $750,000 in restitution orders in 69 matters.”

The recovery of $750,000 in restitution is less that 1% of the annual amount of illegal payments. For those found to have been fraudulent, the Mass Legal Service said, “changes to the unemployment law in 2003 increased the penalties for fraud. Under these new provisions, a claimant found to have fraudulently collected benefits while not in total or partial unemployment must repay not only the amount of the overpayment but also one week of benefits for each week of benefits collected.”

 

Related Articles

 

Enjoy this post? Share it with others.