An insurance trade group representative said today that up to $80 million his industry has spent on investigations to prove fraudulent medical treatments would be negated by a bill approved by New Jersey's legislature last week.
Richard Stokes, regional manager and counsel for Property Casualty Insurers Association of America (PCI), said his organization is calling on Gov. Jon Corzine to veto the measure, which would permit doctors to send patients to ambulatory surgery centers in which they have a financial interest.
Mr. Stokes said that for more than 20 years the law has not permitted such referrals. "Where's the control that says whether this treatment may or may not be necessary? It opens the floodgates [for unneeded treatments]," he argued.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
