Gray’s Bill to Eliminate Workers Comp Fraud Becomes Law

September 30, 2015 - - Assemblymember Adam C. Gray’s (D-Merced) today announced that his bill to eliminate an estimated $1 billion in workers’ compensation fraud annually was signed into law by Governor Brown. AB 1244 requires the Director of Health Care Services to notify the Administrative Director of the Division of Workers’ Compensation of a suspension of a medical provider from the Medi-Cal program. This includes if the medical provider was conviction of a felony or misdemeanor involving fraud or abuse of the Medi-Cal program.  Upon such notification, the Administrative Director would be required to immediately suspend that medical provider from the Workers’ Compensation system.

“California maintains a list of banned doctors who committed fraud in the state healthcare system,” said Gray. “Up to this point, those doctors could simply switch from Medi-Cal patients to workers’ comp to continue to bilk the state out of billions of dollars. This new law shuts them out entirely.”

The new law also cracks down on lawyers who often work in uniCson with these fraudulent doctors to bill for questionable legal services provided to workers’ compensation patients.

“These lawyers work in the shadows, often billing for services their clients have no idea they are supposed to be receiving,” continued Gray. “The new law brings these lawyers out of shadows by requiring that they actually interview and inform their clients of the legal work being provided under penalty of perjury.”

AB 1244 was supported by the California Labor Federation, the California Chamber of Commerce, the California Professional Firefighters, the Medical Board of California, and the California State Association of Counties among others.