Expert predicts increase in insurance fraud
by Ron Coleman
Ongoing changes brought on by the Affordable Care Act of 2010 will be significant incentive for individuals to try to circumvent the new rules and regulations, according to Warren L. Rydstrom, Deputy Chief of Investigations at the Insurance Fraud Bureau of Massachusetts.
Mr. Rydstrom offered his opinion during a presentation at a dinner meeting I attended Feb. 21 in Newton, MA. It was sponsored by the Boston Chapter of ASIS International, an association dedicated to increasing the effectiveness and productivity of security professionals worldwide, of which I am a member.
The IFB was created (and is still funded) by the insurance industry and authorized by state statute in 1990 to prevent, detect and deter suspected fraudulent insurance transactions in Massachusetts. It conducts criminal investigations and refers appropriate cases for criminal prosecution. Typical cases include fraudulent bodily injury claims, workers' compensation claimant fraud, and workers' compensation premium evasion.
Mr. Rydstrom’s investigative division has the power to subpoena records and, as necessary, participate with law enforcment agencies in stakeouts or raids of suspected facilities.
If the federal health care law leads to the kind of increase in claims that he believes it will, Mr. Rydstrom said his staff of 57 members will have to triple in size.
Posted on 2/27/2013