Allstate Files $3.8 Million Medical Fraud Lawsuit Against Physicians and Medical Corporations

Posted on Jun 28, 2013 11:20am PDT

Hauppauge, NY - Allstate Insurance Company is currently seeking to recover $3.8 million from six physicians and five medical professional corporations for insurance fraud, this so happens to be Allstate's third insurance fraud lawsuit conducted in 2013 alone. Allstate has filed 47 fraud lawsuits in the state of New York and is seeking over $235 million in damages from the defendants.

Allstate is alleging that the defendants had routinely submitted fraudulent billing for medical examinations and diagnostic tests that were never performed in accordance with legitimate medical standards and Allstate is claiming that they were not intended to benefit the patients who were purportedly receiving them.

Health care insurance fraud is a common white collar crime; it involves fraudulently obtaining some benefit or advantage from insurance that someone would not otherwise be entitled to. False insurance claims are filed with the intention of defrauding an insurance provider. The goal of the person committing the claim is often to have the insurance provider pay for services that were actually not rendered or covered.

Insurance fraud has existed ever since the beginning of insurance, and fraudulent claims account for a large proportion of claims received by insurers and cost billions of dollars every year. The types of insurance fraud vary significantly, for they can be committed by both the member or the provider. It can involve putting ineligible members or dependents on insurance forms, altering enrollment forms, prescription drug fraud, and failure to report pre-existing conditions.

Providers often commit health care fraud by submitting claims by bogus physicians, billing for services not rendered, billing for higher level services, altering claims, and providing services when their license has been revoked among other forms of fraud.

The Federal Bureau of Investigation, the U.S. Postal Service, and the Office of the Inspector General are all responsible for investigating health care fraud. If a healthcare provider is found guilty of committing fraud, they could face incarceration, fines, and the possibility of losing their right to practice medicine. If you have been accused of committing health care fraud or any other white collar crime, you are urged to contact a Ventura white collar crime attorney from The Law Office of Douglas H. Ridley today!

Categories: Criminal Defense, Fraud, Healthcare Fraud