The massive insurer has sued five medical professional companies and six physicians in the U.S.
Allstate has just filed an insurance fraud lawsuit worth $3.8 million in order to recover the funds from five medical professional corporations and six physicians.
This is the third lawsuit of this nature that the insurer has filed within this year alone.
Overall, there have been 47 insurance fraud lawsuits filed by Allstate in the state of New York since 2003. In total, the insurer has sought over $235 million in damages throughout those years. This most recent suit was filed in the United States District Court for the Eastern District of New York.
There were many different defendants named in the Allstate insurance fraud lawsuit in New York.
The defendants named in this insurance fraud case include: Marat Tsirlin, M.D, Victor R. Sharobeem, M.D., Michael George Alleyne, M.D., Barry Alan Dublin, M.D., Michael I. Bley, M.D., Conrad Robert Williams, M.D., as well as VAS Medical, P.L.L.C, Michael Alleyne Medical Doctor, P.C., Allmed Medical of Williamsburg, P.C., Targee Medical Services, P.C., and Flatlands Medical P.C.
According to the filing, the defendants were regularly participating in insurance fraud through the submission of fraudulent billing for diagnostic tests and medical exams that had never been performed, that were not conducted in compliance with the basic level of legitimate medical standards, and/or they were performed without the intention of providing any benefit to the patients who had undergone them.
Data from the Insurance Information Institute (I.I.I.) has shown that residents of New York are paying millions of dollars every year as a result of no-fault insurance fraud. According to an Allstate spokesperson, Allison McMahon, “In essence, honest hardworking New Yorkers are paying a ‘fraud tax’.” McMahon went on to say that “We need lawmakers to enact meaningful insurance reform that puts the citizens of New York first.”
Allstate is not alone among the New York insurers leading the market in their efforts toward comprehensive reform of the no-fault system in order to help to overcome this overwhelming level of insurance fraud that is driving the cost of coverage skywards.