Univeristy of Colorado Says Insurance Fraud Costing Millions

The University of Colorado says it is losing millions because of fraudulent health insurance claims by employees, and it projects saving more than $2 million a year by cutting ineligible patients.

An audit showed that some 6 percent of dependents covered by CU health and dental coverage are ineligible. That’s about 2,000 people getting benefits they don’t qualify for.

Jill Pollock, CU’s chief human resources officer, says that the university will cut ineligible patients and change procedures to prevent future cases. The school is also trying to cut down on eligible patients who haven’t submitted necessary paperwork.

The insurance audit came as CU looks for cost savings to mitigate state budget cuts.