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Workers’ Comp Fraudster Linked To $270M Medi-Cal Fraud

Federal prosecutors secured a guilty plea in a $270 million Medi-Cal fraud scheme that submitted fraudulent bills for high-cost compounded medications made from generic ingredients that were not medically necessary or, in many cases, not even provided. It was a page straight out of the workers’ compensation fraud handbook – literally. Pleading guilty was Paul … Read More »

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Charges Filed In Deadly Explosion

The Yolo County District Attorney filed criminal charges, including conspiracy and murder, against individuals connected to a deadly explosion last year that killed seven workers. Included among the charges are allegations that the business ownership was cheating on its workers’ comp insurance by paying workers in cash and not reporting the payroll to lower its … Read More »

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Workers’ Comp Reform Coming

A seemingly routine panel discussion at a recent Commission on Health, Safety, and Workers’ Compensation may prove to be the starting point for California’s next round of workers’ compensation reforms. Representatives for injured workers, providers, and payers were discussing what is and isn’t working in the system when a representative for employers and workers’ comp … Read More »

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Bill Proposes More Attorney Disbarments

Assemblyman Rick Chavez Zbur (D-Los Angeles) amended AB 2039 last week to propose strict penalties for attorneys caught in capping arrangements. The bill would require an attorney to be disbarred if convicted as part of a capping scheme. The measure also proposes protections for whistleblowers who expose wrongdoing. The California State Bar is notorious for … Read More »

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Fronting Insurer Sues Employer To Collect Collateral For Captive Program

New York Marine and General Insurance is asking for a jury trial in federal district court to collect over $5 million in collateral, which it contends is owed by a California towing company that was in a group captive program covering AAA’s preferred towing operators. The carrier is going after United Towing & Transport, which … Read More »

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New DIR, DWC Leaders Speak to SIBTF & Other Issues

The Division of Workers’ Compensation’s annual educational forum opened last week under the direction of a new leadership team at the Division and the Department of Industrial Relations. DIR Director Jennifer Osborn noted that she is still months away from her first anniversary in the position, and acting DWC Administrative Director Nicole Richardson has been … Read More »

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Prepaid Debit Card Authorization Bill

The Assembly Insurance Committee is carrying AB 1683 to end the sunset date on a program that allows workers’ comp carriers, third-party administrators, and self-insured employers to distribute workers’ comp indemnity benefits via prepaid debit cards. The prepaid cards have been authorized under a pilot program since 2018. A report released last fall showed that … Read More »

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Uninsured Company Avoids Negligence

The owners of a company that operated without workers’ comp coverage have been found not liable by a court. An employee who was severely burned on the job filed a lawsuit. The employee won a $1.1 million default judgment, but the trial court overturned the award due to attorney error. Hector Pena worked for Inter … Read More »

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