Data from the Insurance Research Council has indicated that there is about $5 to $7 billion in inflated auto insurance claims made every year, though the overall cost that would occur if insurance companies in any sector did not make efforts to detect scams would be significantly higher. Every time fraudulent claims get past the insurers, the end result is that the cost will trickle down to the clients and lead to higher premiums. Therefore, insurance companies have put extensive efforts into place to help prevent scams from occurring in…
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Self-Insurance Institute of America takes aim at Michigan law that would establish a new Medicare tax
The Self-Insurance Institute of America (SIIA) is challenging a new law in Michigan that would impose a 1% tax on paid health insurance claims beginning January, 2012. According to the law, the money collected from the tax will go to the state’s Medicaid program. The program would use part of the money to help cover the cost of claims and administrative fees stemming from participating insurance companies. The tax would generate $400 million in annual revenue for the state, but the Self-Insurance Institute claims that it violates federal law. According…
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