NU Online News Service, Oct. 13, 12:10 p.m.EDT

Allstate Insurance Co. says it has filed its 32^ndfraud suit in the state of New York, this time seeking $4.5 millionfrom more than 20 medical professionals.

Yesterday, the company announced it filed suit against fivemedical doctors, seven chiropractors and 10 medical-professionalcorporations along with one nonprofessional in a scheme toallegedly bill insurance companies fraudulently for procedures,including procedures that were medically unnecessary and/orinappropriate.

Since 2003, Allstate says it has filed 32 fraud lawsuits in NewYork State, seeking more than $175 million in damages.

The company says the situation is New York is unacceptable andthe laws need to be changed because fraud costs honestpolicyholders millions of dollars a year.

“In essence, honest, hardworking New Yorkers are paying a ‘fraudtax,’” says Krista Conte, spokesperson for Allstate’s New Yorkoffice, in a statement. “We need lawmakers to enact meaningfulinsurance reform that puts the citizens of New York first.”

Allstate says it has filed counterclaims and a third-partycomplaint alleging that two New York medical-professionalcorporations (Cambridge Medical P.C. and Pine Hollow Medical P.C.)were fraudulently incorporated through a scheme using the names oflicensed medical physicians, and that a lay-owner, who was not aphysician, secretly owned and controlled the medical-professionalcorporations.

Allstate’s counterclaims and third-party complaint furtherallege that these corporations fraudulently billed AllstateInsurance Co.

Cambridge filed an action seeking to recover billing fromAllstate, and Allstate responded with its counterclaims andthird-party complaint, the company says.

The company went on to say that its claims were filed followingan investigation by Allstate's Special Investigative Unit and seekreimbursement for personal-injury-protection benefits it paid onbehalf of its customers during time frames specified in thecounterclaims and third-party complaint.

Allstate says the counterclaims and third-party complaint arethe latest in a string of actions it has taken to protect consumersfrom these and similar activities.