Allstate Insurance Company has filed an insurance fraud case worth $6.3 million in order to recover the money they lost from fraud by 83 defendants from the New York area. This is the seventh fraud complaint initiated by the insurer this year. The lawsuit was filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) as well as some common law principles. It claims that the 83 defendants took part in parallel, though separate, strategies to use misleading and fraudulent bills when making insurance claims with Allstate for durable medical…
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Allstate files lawsuit against alleged fraud ring in New York
Allstate Insurance is looking to recover more than $4.5 million from and alleged insurance fraud ring comprised of medical professionals. The company filed a suit in the state of New York, where five physicians, ten medical corporations and a sleuth of other medical professionals had allegedly schemed to charge insurance companies for unnecessary procedures. The latest lawsuit adds to growing concerns regarding the rampant state of fraud in the state of New York, increasing the pressure faced by lawmakers to impose new laws to curb the phenomenon. Since 2003, Allstate…
Read MoreIBM supercomputer to recommend action on thousands of insurance claims for WellPoint Inc
IBM’s famed supercomputer, Watson, is taking on a new challenge, the results of which may have a sweeping impact on the nation’s insurance industry. The supercomputer has successfully overcome several challenges in the past, including a “Jeopardy!” competition in which the computer won a decisive victory against some of the brightest minds in trivia knowledge. Watson has shown that its computing power surpasses the capabilities of a human mind and, because it is a machine, is not prone to typical human error. For this reason, the computer is now being…
Read MoreNew York is fraught with insurance fraud
According to a new report by the National Insurance Crime Bureau (NICB), Buffalo, New York, is home to a staggeringly high amount of questionable medical insurance claims. Second only to New York City, Buffalo adds to the states already extensive history of insurance turmoil. The report takes into account all occurrences of claims that have been found as “faked or exaggerated,” as well as instances of “excessive treatment.” The 7,026 questionable claims were filed throughout the state last year. Buffalo accounts for 145 of those, with New York City taking…
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