Disability Insurance Blog



Monday, October 31st, 2011

According to news reports, eleven employees of the Long Island Rail Road (LIRR), including two doctors and seven retirees, are just the tip of the iceberg of a disability fraud scheme that has the potential to cost the Metropolitan Transit Authority (MTA) as much as $1 billion. The alleged scheme took advantage of a massive mess of federal regulations, union work rules and contracts.

The New York Post calls the scam “…so breathtakingly huge that calling it a massive fraud scheme is a gross understatement.”

We all know that the Post is given to hyperbole, but in this case, we agree that it is well deserved.

More to the point for our readers: What will this case mean for the ill and injured employee who files a claim for disability insurance benefits? Expect some additional skepticism from any claims reviewers in the New York-metro area, and for claimants in general. If this story grabs the attention of the national media, there may be a temporary shift as disability insurance companies get on the bandwagon.

We don’t have a crystal ball, so we can’t be sure what the long-term fallout from this case will be, both in the New York-metro area where it takes place or nationwide. Nonetheless, it is troubling to hear about this widespread abuse of the process, and its potential implications for those legitimately disabled and impaired from working.

If you are concerned about the implications of this case and your own disability claim has been denied or is being delayed, give our office a call. We talk to people just like you every day, and we understand how overwhelming this situation is. We can help.