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  August 24, 2009
  Source:  WorkInjury.com, Los Angeles Times
  ----------------------------------------

 
Carriers Water Down Senate
WC Fraud Prevention Bill
 

SB 156 was touted as the "insurance fraud prevention and detection" bill.

It would have required that notices be sent to injured workers so they could verify that medical services billed were in fact performed.

It was expected to prevent lots of fraud and save tons of money.

Only problem was that that the insurance companies who would supposedly reap the benefits of not being defrauded thought it was too expensive for them to put into practice.

So they've just convinced the author of the bill, state Senator Roderick Wright (D-Inglewood), to scrap that part of the bill entirely!

[We can only surmise that either fraud isn't costing carriers that much -- to justify new expenses to prevent it, or sending out notices to injured workers involves way more money than most of us thought.]

 

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