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California’s Joint Legislative Audit Committee will proceed with an audit to investigate possible fraud in the state’s workers compensation system and hopes to have the results in 2018, a spokesman for state Assemblyman Al Muratsuchi, D-Torrance, told Business Insurance on Wednesday.
Assemblyman Muratsuchi, chairman of the audit committee, was named as the recipient of a March 3 letter to the committee from state Assemblyman Tom Daly, D-Anaheim, who in his letter was requesting the audit to prevent, detect and prosecute fraud.
The letter highlights the efforts made by lawmakers in the state to help curb fraud, but adds that “despite all efforts, there is ample evidence that the system remains rife with fraud and waste in connection with providing care and related services to injured workers.”
The letter asks that the state look at larger fraud schemes, rather than focus on individual cases.
Assemblyman Daly outlines several issues in his letter for auditors to address, including: how efforts are coordinated between government agencies; how investigations are deployed and prosecuted; and how efforts are coordinated with insurers and self-insurers to detect and prevent fraud.
He is also asking that auditors evaluate the current system, identify solutions for changes, review the process for recruiting and retaining investigators, and examine how other large states handle workers compensation fraud investigations.
The chairman of the California Assembly Insurance Committee is requesting an audit to rein in possible fraud in the state’s workers’ compensation system, according to a recent letter to the state’s Joint Legislative Audit Committee.