Insurance Department Grants Counties $1.7M for Anti-Fraud Efforts

The California Department of Insurance has issued grants totaling $1.7 million to help prosecutors in six counties fight health and disability insurance fraud, Payers & Providers reports (Payers & Providers, 8/16).

Grant Recipients

The grant recipients are:

• Alameda County, which will receive $106,755;
• Contra Costa County, which will receive $20,000;
• Los Angeles County, which will receive $611,500;
• Orange County, which will receive $581,500;
• San Diego County, which will receive $207,245; and
• Santa Clara County, which will receive $185,000 (DOI release, 8/15).

Comments

Insurance Commissioner Dave Jones (D) said, "California's strained economy has resulted in an increase in insurance fraud schemes," adding, "Local district attorneys often have fewer resources at their disposal to fight fraud."

Jones said, "These additional funds will assist district attorneys across the state in the ongoing fight to combat these types of fraud."

Dave Althausen -- spokesperson for the Department of Insurance -- said that most of the fraud his office has encountered was performed by individuals that typically are trying to collect disability or workers' compensation payments.

He added that sometimes medical groups or other health providers are involved in fraud (Payers & Providers, 8/16).