Insurers Kill Measure Aimed at Curbing Workers’ Comp Fraud
California insurance companies have persuaded lawmakers to abandon a proposal aimed at combating medical billing fraud in the state's workers' compensation insurance system, the Los Angeles Times reports.
The measure was originally included in SB 156 by Sen. Roderick Wright (D-South Central Los Angeles).Â It would have required insurers to send notices to injured workers about billed medical services.
Such notices are standard practice in health insurance but generally are not used for workers' compensation insurance.
The insurance companies opposed the proposal because they said sending notices would be overly expensive. The American Insurance Association did not offer an estimate for the cost of the mailings.Wright removed the provision from SB 156 before its first committee hearing in April. The measure now stands as an effort to encourage insurers to discuss fraud with prosecutors (Lifsher, Los Angeles Times, 8/19). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.