NU Online News Service, Dec. 21 2:26 p.m.EST
|Chalk up Allstate’s 34th fraud lawsuit since 2003 inthe state of New York.
|This time the insurer is seeking to recover $6.3 million from 83defendants who allegedly submitted fraudulent and misleading billsto Allstate.
|Allstate claims that durable medical retail equipment companiestook advantage of New York’s no-fault auto insurance law to submitor facilitate the submission of fraudulent bill and documents forreimbursement.
|“The no-fault system is being exploited and responsible citizensare the victims,” says Krista Conte, Allstate spokeswoman, in astatement. “Without the support of lawmakers, incidents of fraudwill continue to increase.”
|Allstate has joined other insurers and some state leaders in anattempt to reform the auto insurance system in New York. TheNorthbrook, Ill.-insurer has sued to recover more than $185 millionin fraud-related damages in New York since 2003.
|This year Allstate filed seven lawsuits.
|In its latest, filed under the Racketeer Influenced and CorruptOrganizations Act (RICO) and other grounds under local law,Allstate names 30 durable medical retail equipment companies and 25alleged owners of the companies, as well as 18 durable medicalwholesale companies and 10 owners.
|The defendants, in what Allstate calls “separate, but parallelschemes,” submitted alleged bogus bills to get paid for equipment,supplies and orthotic devices.
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