California Agencies Overpaying For Workers Comp Insurance By Millions: Audit

Nov. 21--Ten California state agencies paid $20 million more for workers' compensation insurance than they could have had selected a different insurer, according to a California State Auditor's report published Thursday.

While most state agencies get workers' compensation insurance through the State Compensation Insurance Fund, 32 of them get the insurance elsewhere.

The auditor's office looked at the insurance prices 10 of those 32 departments pay, finding the total was $20 million higher over a five-year period ending in 2018 than it would have been with the state provider, known as State Fund.

The auditor reviewed the prices paid by the departments of Food and Agriculture, Pesticide Regulation, Transportation, Veterans Affairs, Peace Officer Standards and Training and the Military, along with the Governor's Office of Business and Economic Development, the Secretary of State's Office, State Council on Developmental Disabilities and the State Treasurer's Office.

The audit also identified shortcomings with State Fund, finding it automatically denied some claims after patients encountered delays finding a doctor and that it didn't always give state agencies adequate time to review settlement requests before settlement conferences.

Thursday's audit followed one released Wednesday on delays related to the shortage of doctors in the system.

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