Panel Notes Nev. Anti-Fraud Units Not Cost-Effective

Assembly Ways and Means members suggested that a pair of anti-fraud units in the Nevada office of Attorney General Brian Sandoval be removed because they aren’t cost-effective, according to an Associated Press report.

An insurance fraud unit in the state attorney general’s office is costing almost $1 million a year but has reportedly recovered only $126,915 in the first six months of this fiscal year.

A workers compensation fraud unit in the office has a budget in excess of $2.5 million a year but has reportedly recovered only $60,265 in the second half of 2002.

The insurance fraud unit looks into cases in which individuals try to defraud insurance companies.

Insurance companies finance the state fraud unit, but Assembly members said the insurance companies can deduct that cost from their premium taxes.

The workers’ comp state unit investigates cases where workers may fake injuries or cases where employers may try and avoid having industrial insurance coverage.