Calif. Counties Get Grants to Fight Workers’ Comp Insurance Fraud

The California Department of Insurance is awarding $30 million in grants to local district attorneys to be used to find and prosecute workers’ compensation insurance fraud.

“Workers’ compensation insurance fraud creates costs that are a burden on our economy at the time it can least sustain it,” said Insurance Commissioner Steve Poizner. “We must care for injured workers so they get the timely medical care they need and return to work, but for those bilking the system will be caught and prosecuted.”

Funding for the grants is the result of an assessment on employers as determined by the Fraud Assessment Commission. Counties apply annually for these grants. The applications are reviewed by the Workers’ Compensation Grant Review Panel based on a number of criteria, including the previous year’s performance. The panel makes a recommendation to the Insurance Commissioner, who can accept or amend the panel’s recommendation. At that point, the Insurance Commissioner’s final decision must be ratified by the Fraud Assessment Commission.

These grants are still subject to approval in the final state budget.

Source: CDI