Scandal involving government workers and insurance benefits - KCTV5

Scandal involving government workers and insurance benefits growing

Posted: Updated:
KANSAS CITY, MO (KCTV) -

A scandal at City Hall involving city workers allegedly collecting insurance benefits they weren't entitled to is growing.

Seven city and county workers are already facing federal charges, but city officials are looking at many others.

The public employees are accused of using a wellness rewards program to defraud their health insurance carrier, Blue Cross Blue Shield, out of more than $300,000. Now Roy Greenway, the city's internal auditor, is reviewing a list of city employees to determine if they were in any way involved in the insurance fraud scheme.

While the city won't confirm the scope of the audit, multiple sources said the list contains about 200 names of city employees and their family members. The employees work in several city departments and some include firemen.

Early in the day Wednesday, Local Union 42, which represents Kansas City firefighters, released a statement confirming their knowledge of the audit and stating they would launch their own independent investigation into the insurance program as well as the city's accountability and handling of the matter.

"The Kansas City Fire Department has been made aware that several employees may be implicated in allegedly fraudulent manipulation of a Blue Cross program created to reward subscribers for engaging in health promotion activities. KCFD is fully cooperating with all investigatory activities and will take any action necessary at the appropriate time. Until that point, we must treat this as any personnel matter and refrain from further comment."

While seven people are already under federal indictment, authorities with the U.S. Postal Inspection Service, which has been the lead agency in the investigation, said no further arrests or federal indictments are expected.

Copyright 2013 KCTV (Meredith Corp.) All rights reserved.

  • Scandal involving government workers and insurance benefits growingMore>>

  • Government workers allegedly faked exercise to get gift cards

    Government workers allegedly faked exercise to get gift cards

    Wednesday, January 23 2013 7:00 PM EST2013-01-24 00:00:26 GMT
    The FBI has arrested six Kansas City municipal employees in connection with an alleged insurance fraud scheme."No public funds were misappropriated as part of this alleged fraud," according to a statementMore >
    A federal grand jury has indicted six Kansas City municipal employees and a Jackson County correctional employee for insurance fraud. The employees are alleged to have lied about exercise activities to get $250 gift cards for themselves and others.More >
Powered by WorldNow
KCTV 5 News

Online Public File:
KCTV  KSMO

Powered by WorldNow CNN
All content © 2014, KCTV; Kansas City, MO. (A Meredith Corporation Station) and WorldNow. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.