How workers' compensation fraud affects everyone Trickle-down effect How you can help How workers' compensation fraud affects everyone An estimated 25 percent of the general population knows someone that has committed workers' compensation fraud. These seemingly little indiscretions add up to a big problem. Insurance fraud is considered the crime of the '90s. Stealing from large, faceless insurance companies seems harmless at first.
Insurance companies pass on the costs of fraud to employers as higher premiums.
These employers in turn pass on the costs to consumers for goods and services. Employers who can't afford the costs are sometimes forced to move to a state with lower compensation premiums, taking Minnesota jobs and income with them. But employees aren't the only people committing fraud. Employers have neglected to carry workers' compensation coverage. Doctors have falsified bills to insurers.