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Posted on: Feb 12, 2018

For decades, California's Auditor General has been recognized as one of the nation's strongest oversight agencies.  Last year, the Chair of the Assembly Insurance Committee, Tom Daly decided he needed an independent audit of fraud in the Workers' Compensation system.  The Joint Legislative Audit Committee approved his request. 

Over the next month, CAAA will be sharing highlights of what the audit uncovered.

Unpunished Fraud:  Nearly One Billion

The Audit report points to estimates that local district attorneys believe they can win convictions on $970 million in Workers' Compensation fraud. 

Here is the Audit's break down of who is responsible:

Workers Filing False Claims                                     $19 Million                       2%

Employers Avoiding  Required Insurance               $133 Million                   13.8%

Medical Providers Bilking The System                     $812 Million                  83.8%

The full Auditor General's Report- 

https://www.bsa.ca.gov/pdfs/reports/2017-103.pdf