Politics & Government

Riverside County Nets $3.5 Million Grant to Fight Insurance Fraud

Riverside County received more than expected from a state grant to investigate and prosecute insurance fraud.

RIVERSIDE COUNTY - Riverside County supervisors Tuesday unanimously authorized the District Attorney's Office to deposit nearly $3.5 million in grants from the state Department of Insurance (DOI) to combat workers' compensation, auto insurance and healthcare fraud.

The D.A.'s office was awarded slightly more than expected, netting much-needed funds as the agency struggles with red ink on its accounts in the current fiscal year.

The largest sum received was $2.08 million from the DOI's Workers Compensation Insurance Grant Program.

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"It is my continuing intent that these funds be used effectively to pursue and investigate fraud across California," DOI Commissioner Dave Jones said in a letter attached to the grant. "It is also important to focus resources in areas of fraud that have a continuing fiscal impact on the workers' comp system. Medical provider fraud should continue to be a priority of this program."

Jones said a total $34.9 million was distributed to 37 district attorneys' offices throughout the state.

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An $880,500 grant was awarded to the Riverside County D.A. under the DOI's Auto Insurance Fraud Grant Program. The funds are to be applied exclusively to investigations targeting individuals staging wrecks or committing similar offenses to rip off vehicle insurers.

Jones said a total $15.25 million was distributed to localities throughout California for this purpose.

The D.A.'s office also received $512,695 from the DOI's Disability &Healthcare Fraud Program. A total of $5.6 million was made available to grant recipients throughout the state, according to DOI officials.

"Disability and healthcare fraud is committed by individuals, medical providers, corporations, medical equipment dealers, hospitals, laboratories,nursing homes ... and others who prey upon the system," Jones wrote.

"Unfortunately, consumers pay the price for disability and healthcare fraud by paying higher insurance premiums and increased costs for medical services."

Riverside County's allotments are to be expended in fiscal year 2016-17.

The D.A.'s office is struggling to overcome a $4 million shortfall that could precipitate cuts before the fiscal year ends on June 30.

– By City News Service / Image via Shutterstock