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$32M in grants to fight California employee fraud for comp claims

Workers' compensation is an exceedingly valuable government-sponsored insurance, which helps both employers and employees ensure that injured workers are well taken care of. However, just like any kind of insurance, the system is also a breeding ground for fraud. Fraudulent workers' compensation employee fraud claims are common, and for that reason, employers and the California Insurance Commissioner must be on the lookout for the telltale signs of fraud to prevent it and put a stop to it wherever possible.

Recently, the California Insurance Commissioner gave out a total of $32 million through various grants awarded to district attorneys located throughout the states. The grants were distributed out among 36 different counties with the express purpose of fighting workers' compensation fraud. It is hoped that this grant money will be well used and successful in helping a system, in which numerous cases of fraud have been reported.

For example, the Insurance Commissioner stated that his office received over 5,000 different notices of potential instances of workers' compensation fraud in 2012. Reported losses relating to that fraud amount to over $340 million. He said that the impact from this fraud is affecting the success of businesses throughout the state, and it represents a significant drain on the economy.

If the grants are successful, they will inject new life into the fight against workers' compensation fraud in the state of California. Employers and government agencies will have more capability to identify workers engaged in employee fraud regarding the compensation insurance program. It will also help to save California businesses and insurers from spending unnecessary money, which will benefit the statewide economy. Any business which suspects workers' compensation fraud can seek professional assistance in evaluating that case to determine if something can be done to put a stop to it. There are numerous legal strategies that can be employed on behalf of businesses which are being victimized by this pernicious type of fraud.

Source: Insurance Journal, $32M In California To Fight Workers??? Comp Fraud, No author, Oct. 24, 2013

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