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Tuesday, February 13, 2001


Workers’ comp
pay often late,
auditor says

The state is found to be
delinquent in 65% of the
cases reviewed


Star-Bulletin staff

A state auditor's review of workers' compensation benefits paid to state employees found numerous examples of inaccurate or late payments, according to a report released today.

In a summary of her findings, Auditor Marion Higa pointed out problems of accuracy and timeliness in a system designed to compensate workers injured on the job.

Higa said disability payments were late in 65 percent of the cases she reviewed, averaging about eight months delinquent.

In one case a Department of Education claimant waited for more than 14 years to have her disability payment processed, Higa said.

Higa's office found errors and discrepancies in disability calculations involving 36 percent of the reviewed cases, sometimes resulting in overpayments of several hundred dollars to claimants, according to the audit overview.

Agencies reviewed by the auditor overpaid medical bills by a total of $30,871 in 56 percent of 108 bills evaluated, the auditor found.

Higa recommended that state workers' compensation managers improve their claims management to ensure accurate and timely payments to injured workers.

Among other things, she recommended that the state Department of Labor & Industrial Relations, which has overall responsibility for administering workers' comp laws, monitor and assess penalties to ensure compliance with the laws.

Several of the departments that were reviewed disagreed with some of Higa's findings, including the issue of errors and discrepancies in disability payments and overpayments for medical services, according to the report.



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