Allstate Seeks Another $4.5M

Certainly Allstate insurance has it’s share of  trouble fighting insurance fraud in New York, but you should see the other guy! After a flurry of lawsuits already filed this year aimed at recovering millions from fraudulent claims, Allstate is looking to recover another $4.5 million  from 23 New York-area defendants.

According to the Insurance Business Review (IBR), the complaint they filed specifically cites five separate medical doctors, seven different chiropractors and ten professional medical corporations plus one non professional being involved in the scheme.

The complaint alleges that two New York medical professional corporations –Cambridge Medical PC and Pine Hollow Medical PC –were fraudulently incorporated through a scam that used the names of licensed medical physicians when someone else actually controlled the firm.

Allstate’s counterclaims and third party complaint further allege that these corporations billed their insurance company for fraudulent charges. According to Market Watch, the fraudulent bills were for several procedures, including those that were medically unnecessary and/or inappropriate.

The Insurance Information Institute notes that the state of New York is currently involved in an insurance fraud crisis and no-fault fraud is costing New Yorkers hundreds of millions of dollars every year.

Cambridge had filed an action seeking to recover billing from Allstate, and Allstate responded with its counterclaims and third party complaint, which were filed following an investigation by their Investigative Unit. They are seeking reimbursement for personal injury protection benefits that they paid on behalf of their customers.