California Assembly Passes Bill to Tackle Health Insurance Fraud

In an effort to address the growing problem of health insurance fraud around the state, the California Assembly recently passed bill AB 2138, which will increase the amount given to agencies responsible for investigating bad faith disability claims and other types of insurance fraud. Under the measure, the amount paid by health and disability insurers to investigate fraud would increase from 10 cents per insured person to up to 20 cents per insured. The additional funding would allow district attorneys’ offices around the state to investigate and prosecute insurance fraud cases.