$34.9 million awarded statewide to fight workers’ compensation fraud
News: 2016 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Dave Jones today announced he has awarded $34.9 million in grants to 37 district attorney offices representing 44 counties across California to combat workers' compensation insurance fraud.
The grants, funded through employer assessments, support law enforcement efforts in investigating and prosecuting workers' compensation insurance fraud.
"Ultimately California consumers and businesses pay the price for insurance fraud through higher premiums and increased costs for good and services," said Commissioner Jones. "These grants will assist district attorneys across the state in uncovering workers' compensation fraud schemes and prosecuting those who take advantage of the system."
Workers' compensation insurance fraud includes medical provider fraud, employer premium fraud, employer defrauding employee, insider fraud, claimant fraud, and the willfully uninsured operating in the underground economy. These cases, when successfully prosecuted, help level the playing field for honest businesses and discourage future fraudulent activity.
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- Grant funding is based on assessments from California insured and self-insured employers. California district attorneys apply for workers' compensation insurance fraud grant funds. The commissioner's panel reviews the applications and makes funding recommendations to the commissioner, based on multiple criteria, including past performance, the county's problem statement, and their program strategy for the upcoming year. The panel makes a recommendation to the insurance commissioner, who either accepts or amends the panel's recommendation. The commissioner's recommendation is submitted to the Fraud Assessment Commission for their advice and consent, and then the grants are awarded.
California Department of Insurance Workers' Compensation Insurance Fraud Grant Program funding for fiscal year 2016-2017
San Luis Obispo
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.