Maryland Senate passes bill that requires self-insureds to report fraud

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.