Claim: In mid-Jan. Attorney General Chris Koster's (D) office announced a "dramatic increase in workers' comp fraud collections in 2009."
"This office takes seriously its obligations to our state's business community, and individuals who steal from our workers' compensation system undermine a sound business climate," Koster said in a press release.
The presentation of the claim was somewhat surprising since Koster's predecessor, Jay Nixon (D), currently resides in the Governor's Mansion. The claims of massive increases in fines suggest there are corresponding increases in convictions and collections, and that Koster's team is more effectively combating fraud than Nixon did during his tenure.
Facts: While Koster's press release presents true information, according to official reports from the Attorney General's Office, it provides the information in a slightly misleading presentation.
It's true that the number of referrals increased by 30 cases, the number of convictions jumped by 12 cases, levied fines and penalties increased by $377,000 and that total collections increased by $187,900. But Koster's press release makes no indication that conviction rates decreased marginally, from 21.3 percent to 20.8 percent. The rate here is more important than the raw number because it normalizes the data across years.
The glaring omission from Koster's press release, however, is that collection rates for levied fines took a steep fall, from 85 percent in 2008 to just 69 percent in 2009. This is the figure that tells us out of total fines levied, how much was actually paid. Based on state data, that trend is not looking so rosy.
Koster claimed the increase in cases could be attributed to staff realignments. Perhaps Koster's team will also choose to focus on increasing collection rates in the future since it's one thing to win a conviction, and another to ensure proper enforcement of ordered fees and restitution.
Related Links:
AGO Press Release
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