California is cracking down on graft in the state’s system of medical care for injured workers with two bills recently signed into law by Gov. Jerry Brown.
Employers are paying the price for what prosecutors throughout California describe as more than $1 billion in medical fraud plaguing the state system.
In many ways, scamming the health system meant to heal California’s injured workers is just too easy. Case documents reveal gaping holes in the state’s strategy to prevent fraud.
A review of thousands of criminal court records shows a workers’ compensation system in which pay-to-play schemes trump patient care, particularly in unregulated treatments rejected by insurers and disputed in obscure courts.
The history of fraud in the California medical system meant to help injured workers goes back decades.