News: 2009 Press Release

Insurance Commissioner Steve Poizner announced today nearly $30 million in grants to local county district attorneys to help combat workers' compensation fraud, an increase of almost $1 million over last year.

"In this struggling economy, it is more important than ever to make it easy for businesses to stay and expand in the state. Because fraud drives up the costs of workers' compensation insurance, we must continue to be vigilant in our battle with those who dishonestly and illegally take advantage of the system," said Commissioner Poizner. "Fraud is not a victimless crime and is a $500 hidden tax on every man, woman and child in California. I am happy to be able to provide this funding to our local law enforcement partners so we can work together to fight this fraud."

Funding for the grants is the result of an assessment on employers as determined by the Fraud Assessment Commission. Counties apply annually for these grants. The applications are reviewed by the Workers' Compensation Grant Review Panel based on a number of criteria, including the previous year's performance. The panel makes a recommendation to the Insurance Commissioner who can accept or amend the panel's recommendation. At that point, the Insurance Commissioner's final decision must be ratified by the Fraud Assessment Commission.

Below is a chart of the funds distributed to the various counties.

Commissioner Poizner has worked to ensure an efficient and effective workers' compensation insurance market free of unwarranted and unnecessary rate hikes. In the last month alone, he completed a hearing to determine what some of the cost drivers were in the workers' compensation market, released a top down review of the Workers Compensation Insurance Rating Bureau and an audit of State Fund, the state's workers' compensation insurer of last resort. Both reviews included specific recommendations that would make the organizations more proficient and successful at their duties.