The Maryland state Senate passed a bill Tuesday that would require employers who self-insure to report workers compensation fraud to the Maryland Insurance Administration’s Fraud Division.
S.B. 575, sponsored by Sen. Katherine Klausmeier, D-Baltimore County, passed unanimously and would take effect in October.
The bill requires governmental self-insurance groups and self-insurers to report suspected insurance fraud cases to the state’s fraud division, but the division has no authority to investigate and act on these cases, according to a legislative analysis of the bill.
S.B. 575 advances to the Maryland House.
The Los Angeles Police Department has arrested two of its own in the past two weeks for suspected workers compensation fraud, the Los Angeles Daily News reported Monday.