CHA News

Taking Action: EDD Fights Disability Insurance Fraud

For human resources managers

Recently, hospitals have noticed a sharp increase in fraudulent disability insurance claims illicitly filed under the name of health care providers.  

Fraudulent disability insurance claims are not a victimless crime. These illegal claims threaten to unlawfully steal benefits from medical providers, increase their taxes, and fund organized criminal activities.  

Fortunately, the Employment Development Department (EDD) recognized the severity of the problem, and the department took timely action. Specifically, EDD is suspending recently created accounts that are suspicious, as well as working with law enforcement to catch the perpetrators.  

For providers who find their disability insurance accounts inaccurately suspended, EDD is providing heightened verification process and will be reaching out to medical providers to complete the identification verification. EDD has also issued FAQs to assist medical providers. 

Questions can be directed to Gideon Baum, CHA vice president, policy, at [email protected]