Bill Text: CA AB1422 | 2017-2018 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Workers’ compensation insurance: fraud.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2017-09-26 - Chaptered by Secretary of State - Chapter 300, Statutes of 2017. [AB1422 Detail]

Download: California-2017-AB1422-Amended.html

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Amended  IN  Assembly  April 20, 2017

Amended  IN  Assembly  April 06, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 1422

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Introduced by Assembly Member Daly

February 17, 2017

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An act to amend Section 4615 of the Labor Code, relating to workers’ compensation insurance.

LEGISLATIVE COUNSEL'S DIGEST

AB 1422, as amended, Daly. Workers’ compensation insurance: fraud.

Existing law governing workers’ compensation requires a lien filed by or on behalf of a physician or provider of medical treatment services or medical-legal services, and any accrual of interest related to the lien, to be automatically stayed upon the filing of criminal charges against that physician or provider for an offense involving fraud against the workers’ compensation system, medical billing fraud, insurance fraud, or fraud against the Medicare or Medi-Cal programs. Existing law makes the stay effective from the time of the filing of the charges until the disposition of the criminal proceedings.

Existing law requires the Administrative Director of the Workers’ Compensation System to promptly suspend any physician, practitioner, or provider from participating in the workers’ compensation system as a physician, practitioner, or provider if the individual or entity has been convicted of certain crimes, including crimes involving fraud or abuse of the Medi-Cal program, Medicare program, or workers’ compensation system, or fraud or abuse of any patient, or if the individual or entity has been suspended, due to fraud or abuse, from the federal Medicare or Medicaid programs or the individual’s license, certificate, or approval to provide health care has been surrendered or revoked. Existing law establishes procedures for the adjudication of any liens of a physician, practitioner, or provider who is suspended pursuant to this provision.

This bill would instead make the automatic stay effective would, in the event the criminal proceeding resulted in a conviction, additionally require the stay to remain in effect from the date of the conviction until the adjudication procedures described above have been completed.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 4615 of the Labor Code is amended to read:

4615.

 (a) Any lien filed by or on behalf of a physician or provider of medical treatment services under Section 4600 or medical-legal services under Section 4621, and any accrual of interest related to the lien, shall be automatically stayed upon the filing of criminal charges against that physician or provider for an offense involving fraud against the workers’ compensation system, medical billing fraud, insurance fraud, or fraud against the Medicare or Medi-Cal programs. The stay shall be in effect from the time of the filing of the charges until the disposition of the criminal proceedings. In the event the criminal proceedings result in a conviction, the stay shall remain in effect from the date of the conviction until the adjudication procedures specified in Section 139.21 have been completed. The administrative director may promulgate rules for the implementation of this section.

(b) The administrative director shall promptly post on the division’s Internet Web site the names of any physician or provider of medical treatment services whose liens were stayed pursuant to this section.