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Posted on: Feb 5, 2018
There is deception in the State's own fraud-prevention efforts.
 
The Legislature ordered the California Auditor General to investigate fraud in Workers' Compensation.  The Auditor General has released its report.
 
Workers account for 2% of the fraud.  Provider profiteers account for 83.8% of an estimated $1-3 billion in systemwide fraud.
 
One of the key findings is the dishonesty the state itself is committing by failing to investigate the profiteers responsible.
 
The state agencies responsible for uncovering and shutting down fraud in the system fail to spend the money allocated to them...fraud investigator positions go unfilled so 40% of cases are closed without any investigation.
 
The law says that they should redirect the unspent money to local District Attorneys so that they can do the job.  But the state agencies aren't doing that.
 
The Auditor General uncovered this...
"Instead of redirecting CDI's unspent funds to the district attorneys' offices, the insurance commissioner and the Fraud Commission used the funding to offset-or reduce-a subsequent year's collection from employers. If they had chosen to redirect the funds, the insurance commissioner and the Fraud Commission could have avoided reducing the amount of money available for investigating and prosecuting workers' compensation fraud."
 
They collect money from employers to pay for fraud investigation...they don't spend it...don't investigate 40% of the cases...then let employers pay less to investigate fraud the next year.