Welcome! Login | Register
 

Angiulo: What it Takes to Prove Operating a Motor Vehicle with Suspended License for OUI—One of the things that television shows get…

Pats Escape New York With 17-16 Win—Patriots beats Jets to clinch first round bye

Smart Benefits: CMS Issues Proposed Rule on Definition of Spouse—This month, the Centers for Medicare and Medicaid…

Crusaders Get Run Over by Golden Griffins,  Fall 67-48—Holy Cross Falls 67-48 to Canisius

Sharks Fall to Portland, 4-3 in OT—Sharks fall to Portland in OT, 4-3

25 Great Last Minute Local Gifts in Central MA—Still haven’t finished your Christmas shopping? Check out…

John Monfredo: Ted Coghlin: A Dynamic and Caring Hero Who Will Be Missed!—During this holiday season we mourn the passing…

Americans Identifying Race Relations as a Top Issue Sharply Rises According to Gallup Poll—Gallup released results from a new poll on…

Sharks Fall 4-1 On Road to Manchester—Sharks Fall 4-1 to Manchester on the road

Monster Jam ‘Roars’ Into the DCU Center—Monster Jam will be returning to the DCU…

 
 

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.