30 Million for Fraud?

For Release: June 18, 2009
Media Calls Only: 916-492-3566
Insurance Commissioner Steve Poizner Announces $30 Million in Grants to Fight Workers’ Compensation Fraud
Insurance Commissioner Steve Poizner announced today nearly $30 million in grants to local county district attorneys to help combat workers' compensation fraud, an increase of almost $1 million over last year.

"In this struggling economy, it is more important than ever to make it easy for businesses to stay and expand in the state. Because fraud drives up the costs of workers' compensation insurance, we must continue to be vigilant in our battle with those who dishonestly and illegally take advantage of the system," said Commissioner Poizner. "Fraud is not a victimless crime and is a $500 hidden tax on every man, woman and child in California. I am happy to be able to provide this funding to our local law enforcement partners so we can work together to fight this fraud."

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.

Below is a chart of the funds distributed to the various counties.

Counties Worker's Comp Fraud Grant
FY 2009-10

Alameda $1,273,874
Amador $460,000
Butte $200,000
Contra Costa $600,000
El Dorado $275,000
Fresno $1,180,000
Humboldt $240,000
Imperial $65,000
Kern $900,000
Kings $282,673
Los Angeles $5,067,032
Madera $46,185
Marin $200,000
Mendocino $70,000
Merced $150,000
Monterey $500,000
Orange $3,114,894
Riverside $1,130,000
Sacramento $900,000
San Bernardino $2,151,640
San Diego $4,800,000
San Francisco $775,000
San Joaquin $580,000
San Luis Obispo $94,000
San Mateo $525,000
Santa Barbara $300,000
Santa Clara $2,153,365
Santa Cruz $125,000
Shasta $162,127
Siskiyou $26,170
Solano $175,000
Sonoma $98,735
Tehama $30,556
Tulare $317,950
Tuolumne $20,000
Ventura $724,615
Yolo $172,591

TOTAL $29,886,407

Commissioner Poizner has worked to ensure an efficient and effective workers' compensation insurance market free of unwarranted and unnecessary rate hikes. In the last month alone, he completed a hearing to determine what some of the cost drivers were in the workers' compensation market, released a top down review of the Workers Compensation Insurance Rating Bureau and an audit of State Fund, the state's workers' compensation insurer of last resort. Both reviews included specific recommendations that would make the organizations more proficient and successful at their duties.

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