Allstate Insurance Company has filed suit against two New York area defendants. In its second insurance fraud lawsuit of 2013, Allstate seeks to recover $1.7 million. Since 2003, Allstate has filed 46 fraud lawsuits in New York State seeking more than $233 million in damages. The suit, against Gerald Surya, M.D., Sun Medical Care of Nassau, P.C., and Sky Medical, P.C., was filed in the U.S. District Court, Eastern District of New York.
Allstate alleges that Sun and Sky defrauded Allstate by creating and submitting false, fraudulent and inflated invoices containing excessive charges for unwarranted, unnecessary and undelivered medical treatment and testing. As a result of the Defendants’ allegedly fraudulent billing scheme, the P.C.’s were not entitled to collect no-fault insurance benefit payments under New York law, according to Allstate. The Insurance Information Institute says no-fault fraud is costing New Yorkers hundreds of millions of dollars year after year. Allison McMahon, Allstate spokesperson said:
In essence, honest hardworking New Yorkers are paying a ‘fraud tax’. We need lawmakers to enact meaningful insurance reform that puts the citizens of New York first.
Allstate said it is one of a number of insurers pursing comprehensive reform of the no-fault system in New York. Ms. McMahon, on behalf of Allstate, had this to say about the current state of affairs:
The no-fault system is being exploited and responsible citizens are the victims. Without the support of lawmakers, incidents of fraud will continue to increase. We need to work together this legislative session to fix the broken no-fault system.
Now in its 80th year as an insurer, the Allstate Corporation is the nation’s largest publicly-held personal lines insurer. Incidentally, the giant insurer may be leading the “corporate league” in suing folks and asking for punitive damages.
Source: Insurance Journal
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