State Fund Instructs So. Cal Employers on Workers’ Comp Fraud

May 31, 2005

As part of its ongoing statewide educational program on workers’ compensation fraud, State Compensation Insurance Fund held a seminar on May 20, for San Bernardino County employers.

State Fund was joined by the San Bernardino County District Attorney’s Office to inform employers about workers’ comp fraud. It
is estimated that workers’ comp fraud costs millions of dollars
annually, resulting in increased costs for employers and the general economy.

The seminar was entitled, “What Employers Need To Know About Workers’ Compensation Fraud,” and was held in the San Bernardino Hilton and included presentations from San Bernardino County Lead Deputy District Attorney Tracy Bartell, State Fund Fraud Investigation Program Manager Donna Gallagher and State Fund Government Relations Officer Pat Quintana.

The San Bernardino event is among the free State Fund seminars held
throughout the year to educate employers and employees on workers’
comp insurance fraud issues, which contribute significantly to increased workers’ comp costs, including employer premiums.

State Fund also participated in a Business Roundtable sponsored by the City of Santa Ana, on May 19. During the roundtable, business manufacturers were given tips on how to prevent fraud and decrease their workers’ comp costs.

The Roundtable included presentations on fraud and an overview of last year’s landmark reform legislation from Pat Quintana, State Fund South Orange County District office manager Terry Suss, insurance broker, Scott Hauge and Tom Martin, legislative chair of the Small Business Manufacturers Association of California.

In addressing the employers, Hauge told the group, “Effectively
fighting workers’ compensation fraud requires the cooperation of all parties. I would encourage all employers to feel free to discuss any questions they have with their brokers. A broker can often provide assistance in helping combat fraud by working closely with the carrier.”

According to Gallagher, “Insurance fraud is the number two ‘white collar’ crime in the nation. Everyone has a stake in fighting fraud. We will continue to work with all the system’s stakeholders to prevent
fraud and the harm it does to California’s economy.”

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