A bill that would have chilled the use of surveillance in Colorado workers’ compensation fraud investigations quietly died in Colorado’s state Senate committee during the 2010 General Assembly.

“The bill would have imposed needless legal burdens and hurdles on insurers and employers in conducting needed investigations of fraud suspects. This is a victory against workers’ compensation fraud. Preserving the ability to fully investigate suspected schemes will benefit consumers and businesses throughout Colorado,” said Howard Goldblatt, director of government affairs at the Coalition Against Insurance Fraud.

The most-restrictive provision of HB 1012 that lawmakers debated would have required insurers to establish a “reasonable basis” before they could use surveillance on fraud suspects. Insurers also would have had to destroy case materials after five years unless the material related to an ongoing investigation.

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