The House approved a measure, HB 1750, that amends the state insurance fraud law to allow for greater communications among insurance carriers, law enforcement and providers to prevent fraud.

"The way the law is now it’s hard to prove fraud in some cases where, for instance, a provider might be double dipping because of the restrictions on sharing certain information,” said Bryan Barbin, D-Cambria, the sponsor of the bill. “Estimates are the health care fraud wastes $1 billion a year in Pennsylvania. We hope to bring that number down a bit.”

An analysis provided by the House Democratic Caucus highlights the main points of the bill:

  • Expand the criminal definition of insurance fraud;
  • Expand protections for those who cooperate with law enforcement officials;
  • Require the development of anti-fraud plans by insurers for all lines of insurance, and require the filing of those plans with the Pennsylvania Insurance Department;
  • Require the Insurance Department to provide an annual certification program and statistical report of anti-fraud efforts;
  • Require insurers to cooperate in the exchange of information to fight insurance fraud; and
  • Prohibit insurers from passing on costs of insurance fraud payments to policyholders through rate filings.