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Showing posts with label US Postal Service. Show all posts
Showing posts with label US Postal Service. Show all posts

Thursday, April 14, 2011

Playing the Fraud Card - The Boat Named Free Ride

In recent testimony before the US House of Representatives' Committee on Oversight and Government Reform, David C. Williams, Inspector General of the US Postal Service, reported widespread fraud in the system, and with an entourage of others, urged "significant reform" of the Federal Employees Compensation Act (FECA) Program. 

He said, "The Postal Service is the largest FECA participant, paying more than $1 billion in benefits and $60 million in administrative fees annually, creating a long-term liability of $12.6 billion. As of February 2011, the Postal Service had about 15,800 disabled employees. Over 8,700 were at least age 55, about 3,100 were at least age 65, and about 900 were between age 80 and 98. "

"...Since October 2008, we have removed 476 claimants based on disability fraud, recovered $83.5 million in medical and disability judgments, and halted significant future losses. In one investigation, a fraudulent claimant received $142,000 in benefits while she was working as a real estate agent, and we had pictures of her hiking and bungee jumping. She even bought a boat named “Free Ride.” Other investigations have found fraudulent claimants working as martial arts instructors, landscapers, hairdressers and mechanics."


What is really sad is that the plot is aways the same. When the budget needs to be balance, the target unfortunately becomes those who are compromised and limited in ability to defend themselves, the injured worker. There is always a bad sailor on the ship, but there is no need to have everyone walk the plank.  Agreed that the system is 95 years old and doesn't function efficiently, as is mirrored other jurisdictions. The fraud card is merely an excuse and not a remedy. Maybe it is time for a new approach entirely to help injured workers by resolving the medical delivery problems and creating a unified and universal Federal approach. 

Thursday, March 3, 2011

US Postal Service May Fail to Deliver Workers Compensation Benefits

A small United States Postal Service truck see...Image via Wikipedia
In testimony before the US House of Representatives yesterday it was disclosed that the US Postal Service may defaulting on its delivery of workers' compensation benefits. A $1.3 billion payment scheduled for November 2011 just can't be met under present financial plans.


Patrick R. Donahoe, US Postmaster General stated, "Even as we continue to fulfill our commitment to service, we must address one particular area of concern – our liquidity. I would like to discuss this in more detail, to provide a clear picture of our situation and to give some background, especially for the new committee members. Without changes in applicable laws, at the close of this fiscal year, in seven months, the Postal Service will be insolvent, as we will be unable to meet all of our financial obligations."

Related articles

Thursday, January 20, 2011

Federal Push to Cap Workers' Compensation Based on Age

Sen. Susan M. Collins (R-Maine) has asked for an investigation by the Government Accounting Office to determine if too many Federal employees of retirement age are receiving workers' compensation benefits.

She stated, ""I am increasingly concerned that individuals with no intention of returning to work continue to receive these benefits," said Senator Collins. "At the U.S. Postal Service, for example, 1,000 employees currently receiving federal workers' compensation benefits are 80 years or older. Incredibly, 132 of these individuals are 90 and older and there are three who are 98. This abuse may extend across the government where the Department of Labor regularly pays benefits to employees in their 70s, 80s, 90s, and even 100s. The lack of benefit caps and requirements for regular third-party certifications of continued need further expose the FECA program to possible fraud. If recipients are gaming this crucial benefit at taxpayers' expense, they must be exposed and the underlying program must be reformed.""

Sunday, November 14, 2010

USPS May Declare Bankruptcy Citing High Workers Compensation Costs

A small United States Postal Service truck see...
The Washington Post reported Saturday that the US Postal Service (USPS) may declare bankruptcy and cited high combined benefit costs as a major cause for its financial instability.  The quasi-governmental agency is running into problems it claims because of its requirement to to pre-fund $5.4 billion to a retiree health benefit fund and pay $2.5 billion to the federal workers' compensation fund.

The USPS's troubles mirror that difficulties stangulating the nation's network of state workers' systems caused by the inability to fund soaring medical costs enhanced by complications caused by duplicate administrative costs engulfed by a multiplicity of collateral programs. In contested claims injured workers are shifted to other benefit programs to pay for medical costs. Those secondary programs ultimately seek reimbursement from the primary benefit program, workers' compensation coverage, and literally clog up administrative dockets and create greatly enhanced processing costs and monumental delays.

While the USPS will seek assistance from the Republican majority in
US Congress, it is uncertain what financial aid will be forthcoming, or whether Congress will take a deeper look at the nation's workers' compensation entirely. The last time the Republican's dominated Congress proposals were suggested by the former Speaker, Newt Gingrich, to over haul the national system entirely.

The medical component is now in critical condition. It remains uncertain if it will addressed in the next congressional term, or whether it will be the can that is kicked down the road to be dealt with in the future. The growing trend remains, that Federalization of the medical delivery component is the probable  solution to both the USPS's compensation difficulties as well as the the nation's.

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For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900jon@gelmans.com have been representing injured workers and their families who have suffered work related accident and injuries.