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USPS OIG: Curbing Workers’ Comp Abuses

USPS OIG: Curbing Workers’ Comp AbusesDisability programs are vital for a nation that supports its citizens. In the United States, federal employees, including postal workers, who suffer employment-related injury or illness are entitled to workers’ compensation under the Federal Employees’ Compensation Act (FECA).

The U.S. Postal Service funds workers’ compensation benefits for employees who sustain job-related injuries. In fiscal year (FY) 2014, the Postal Service incurred over $1.3 billion in workers’ compensation expenses. In addition, the Postal Service estimated its liability for future workers’ compensation costs at nearly $17.1 billion. The U.S. Department of Labor’s Office of Workers’ Compensation Programs (OWCP) administers the workers’ compensation program and then bills the Postal Service for reimbursement.

While most compensation claims are legitimate, fraud and abuse do occur. The U.S. Postal Service Office of Inspector General (OIG) focuses resources on identifying claimants and providers who defraud the system. In FY 2014, OIG investigations saved the Postal Service more than $275 million in future workers’ compensation costs, and arrested 82 individuals for workers’ compensation fraud.

One recent successful case highlights the type of cases our agents investigate:

A postal letter carrier had been receiving workers’ comp benefits since 2001 after claiming total disability from a back injury at work. Investigators, however, discovered he had started a landscaping company shortly after his claimed injury and was routinely working at that company. Agents observed the individual driving a dump truck, operating a riding lawn mower and a tractor, and directing the activities of other individuals at customer properties. Undercover investigators also hired the former carrier to perform landscaping work for them, which they video recorded and presented as evidence to prosecutors and the Department of Labor (DOL). These activities exceeded the former employee’s stated limitations and he failed to inform the DOL of his involvement in this business, both of which resulted in his conviction and the termination of his benefits.

This successful investigation alone saved the Postal Service approximately $664,000 in future workers’ compensation payments. What suggestions do you have for preventing workers’ compensation fraud? And if you suspect fraud by either a Postal Service employee or provider, please contact our office at 888-877-7644.

via : Curbing Workers’ Comp Abuses | USPS Office of Inspector General

For FY 2014 covering Oct , 2013- Sept 30, 2015

oigworkerscompsource: USPS OIG

 

10 thoughts on “USPS OIG: Curbing Workers’ Comp Abuses

  1. There are so many employees at my plant with seemingly lifetime restrictions because of an injury years ago. They can’t lift, bend, reach, walk, sit, stoop, etc., but then a job comes up for bid with duties outside of their restrictions, but they want the job, and suddenly they’re healed after being the successful bidder.

    Of course, some people do get injured and their plight is made more difficult because of those worthless “injured” people that insist on doing nothing.

    So, great, I glad the OIG has finally picked up the ball on exposing all these frauds. Please have the OIG that are at my office to investigate the frauds here.

  2. A lot of people who come to work are not on work comp but they can’t lift a finger.
    Investigate that

    • 12 million odd people on SSDI and the system essentially out of cash with Congress proposing to divert SS funds to shore it up. Not to mention the “disabled” vets that I work with that seem to spend more time scheming to increase the cuckoo check than on anything else.

      It is a problem across all of society, everyone has an angle. Good for the IG but it is a mere drop in the bucket.

  3. An honest question. Has anyone ever known a co-worker who abused the workers’ compensation system? Ever know anyone with a 1 pound lifting restriction who somehow managed to put on his pants in the morning and somehow managed to carry his groceries to the car? Those of you whose knees hurt, back hurts, feet hurt, head hurts from carrying those folks have a right to complain. In May of 2013 “over 20,000 employees received benefit payments, including 181 between the ages of 90 and 99 and two over the age of 100.”

    I am old school, but in my day the term “sorry” was applied to those who could work but would not work. It is a shame that term on longer has a meaning, but of course “shame” doesn’t either.” Those of you soldering on out there day in and day out have a license to complain.

  4. Let us see, how many of these OIG investigations result in egg on the face of the OIG? What is the cost of these investigations? I know of people who were video taped and OIG presented the information to OWCP and Prosecutors and they held the employee did not commit fraud. This was in Maryland, how much for that investigation? Why do they not report the losses incurred due to wasteful investigations??? Could it be that the cost of the wasteful investigations far exceed the cost of the investigations which result in a conviction? I wonder, I truly wonder.

  5. That’s great!!

    Now, how about doing something, ANYTHING about management’s accepted practice of fudging volume data to support their daily whims?! And, while you’re at it, get on them for falsification of data that is so completely obvious with just a glance at the computer records that they keep and constantly change at hours of the day when those functions can not change. These after the fact falsifications should just jump out at you sleuths!! The most obvious culprits are those managers that seem to never want to go home. You know, those that “work” 60-70 hours per week for a forty hour per week job???

    • Management would never fudge data, would they?
      What would management gain by fusing data?
      If they supervise or manage for 60-70 hours per week, why not pay them for their hours?

    • Well Jim,

      I know our 12 hours per day manager added volume to the routes on one particular day. Her reason? We didn’t have a good day in the office, so she “added volume in the evening” to make our performance look better. I’m sure the volume she entered in the morning was just as honest, probably the reason we “performed badly” in the first place. What does she have to gain?! I suppose she’s bucking for a promotion and figures this will help. That’s just my guess. Another guess would be that the powers that be will see all the hours she’s “working” and realize she’s incompetent. Then I suppose whe will get that promotion because we all know incompetence in king in the management of the USPS.

  6. I know how to save even more that that. Fire All of Management. that will save billons of dollors of waste and fraud .

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