CA IC Announces $30M In Grants To Fight WC Insurance Fraud

"Workers' compensation insurance fraud creates costs that are a burden on our economy at the time it can least sustain it," said Commissioner 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. Below is a chart of the funds distributed to the various counties.

Commissioner Poizner has worked to ensure an efficient and effective workers' compensation insurance market. He has rejected multiple requests for double-digit increases in the Workers' Compensation Cost Claims Benchmark. Last year, he released a top-down review of the Workers' Compensation Insurance Rating Bureau and an audit of State Fund, the state's largest workers' compensation insurance company. Both reviews included specific recommendations that would make the organizations more proficient and successful at their duties. 

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