Legislature Creates New Fraud Unit in Minn.

Minnesota has taken a tougher stance against insurance fraud by establishing a fraud unit in the Department of Commerce and strengthening its laws by making it a crime to use runners and cappers to recruit patients.

“Senate File 3015 is a positive step forward in our fight to reduce fraud,” Laura Kotelman, counsel for the National Association of Independent Insurers (NAII), said. “The fraud bureau will be better able to coordinate insurance fraud investigations and cracking down on these organized scams will help to reduce costs.”

Many insurance crime rings operate in urban areas and specialize in staging auto accidents. The scams often involve health care and legal professions, as well as street operators, often called cappers and runners.

“Insurance fraud is a significant problem in Minnesota,” Kotelman continued. “It is not a victimless crime as fraud costs every consumer hundreds of dollars per year in additional premiums. This legislation patterned after a model act of the Coalition Against Insurance Fraud, is a good first step, however the industry supports continued action to address other areas in need of reform.”

Topics Fraud Minnesota