Allstate Seeking S21M in Accidental Payments in "Consumer Protection" Measure HAUPPAUGE,N.Y., - Allstate Insurance Company has filed its first insurance fraud lawsuit of 2012, seeking to recover $2 million dollars against 27 New York area defendants. The Complaint names multiple physicians, chiropractors, medical professional corporations, and clinic lay-owners allegedly used to control the medical professional corporations, including 18 individual defendants currently under federal indictment. The complaint alleges that New York medical professional corporations known as St. John Medical Care. PC Lenox Wellcare Medical. P.C.. CB Chiropractic. LLC. New Age Orthopedic Rehabilitation. P.C.. First Aid Medical Care. PC. Rosedale Medical. PC. TDL Medical. PC. LPT Medical. PC. and West End Chiropractic. PC. were fraudulently incorporated through a scheme using the names of licensed medical physicians and chiropractors, and that lay-owners, none of whom were physicians, secretly owned and controlled the professional corporations. The lawsuit was filed following an investigation by Allstate's Special Investigative Unit and seeks reimbursement for no-fault benefits Allstate paid on behalf of its customers during timeframes specified in the lawsuit. The lawsuit is the latest in a string of actions taken by the insurer to protect consumers from these and similar activities. Since 2003, Allstate has filed 37 fraud lawsuits in New York State seeking more than S 201 million in damages. According to the Insurance Information Institute, the state of New York is in an insurance fraud crisis and no-fault fraud is costing New Yorkers millions of dollars vear-after-vear in higher premiums. "In essence, honest, hardworking New Yorkers are paying a 'fraud tax,'" said Krista Conte, spokesperson for Allstate's New York office. "We need lawmakers to enact meaningful insurance reform that puts the citizens of New York first." Source: PR Newswiiv PIP: Scott 'arm bending'Works in Florida Tallahasse, FL Gov. Rick Scott scored a huge victory when the Florida Senate signed off on a last-ditch effort to crack down on personal injury protection fraud. But the vote elicited rebukes from some senators who wanted the upper chamber to stand its ground and refuse to concur with the proposal - crafted largely by insurance industry lobbyists - in a debate highlighted by a stemwinder by Sen. Miguel Diaz de la Portilla, R-Miami. Diaz de la Portilla, a lawyer, repeatedly called the deal a "phoney baloney" attempt to combat fraud. Diaz de la Portilla had convinced the Senate in its version of the PIP reform to keep intact "multipliers" allowing lawyers to be paid escalated fees. The compromise did away with that but, in a concession to the Senate, did not cap attorneys' fees or set an hourly rate. Growing more incensed as his rant went on, Diaz de la Portilla said that PIP scams aren't the real fraud. "I think the House measure that's been sent over to us and that we're being asked to concede to. that's the fraud. It's a fraud on the consumers of the state of Florida. It's a fraud on the people who have to buy these policies by law. It's a fraud on those who are injured in accidents. It's a fraud because it basically is the Insurance Company Relief Act of 2012. That's what it is. That's exactly what we're talking about," Diaz de la Portilla said Sen. Dennis Jones, a Seminole chiropractor who said he is probably the only senator who actually treated a PIP patient, called the bill a "very, very punitive" measure for chiropractors. Patients will now be limited to $2,500 worth of chiropractic treatment, a change from the 24 visits over three months now allowed. Sen. Joe Negron, the Stuart Republican who brokered the deal for the Senate and sponsored the chamber's trial lawyer-friendlier proposal, rejected his colleague's criticism that the Senate would be giving up too much by taking the House offer. Negron then defended his efforts to keep chiropractors in the mix at all. "The House wanted to take chiropractors, tie two 50-pound cement blocks to their ankles and drop them over the boat into the bottom of the ocean. And they were never going to be heard from in PIP again. I found that very offensive." Negron. a lawyer, said. Chief Financial Officer Jeff Atwater, a former Senate president who pushed alongside Scott for the overhaul, called Senate critics "dead wrong" about the deal."The Senate got all its fraud language. The Senate got all its licensure language. The Senate got room for • chiropractic care. The Senate did not cap attorneys fees. The Senate did a fine job. The House was very firm on driving the cost drivers of utilization down. They came together with a really solid compromise," Atwater said. Atwater said he's certain premiums will decrease although the bill does not require it. "I think they're going to see when that independent study comes down that they're going to indicate rates need to be coming down. They need to come down now," he said. Pass on the information to inform other D.C. 's about events that are really happening to chiropractors. For further information, fax 1-305-716-9212. Write us at [email protected] or #CO138, 8619 NW 68th St.. Miami. FL 33166.
