FARMINGTON HILLS, Mich._Insurer Allstate Corp. said Wednesday it filed a complaint against a Michigan medical billing company, accusing it of insurance fraud and billing Allstate for unnecessary services.
Allstate's complaint alleges Global Medical Billing of Sterling Heights, Mich., committed insurance fraud, misrepresentation, and unjust enrichment. According to Allstate, Global Medical Billing solicited people who were involved in motor vehicle accidents, and sent them to clinics controlled by non-medical personnel. Those personnel directed them to receive unnecessary services including physical therapy, transportation, and testing, Allstate said.
Global Medical Billing did not immediately return requests for comment.
Allstate said it is seeking to recover payments to Global Medical Billing of more than $380,000. It also looking for exemplary damages and attorneys' fees. It filed a claim under the Racketeer Influenced and Corrupt Organizations Act, or RICO, which would allow Allstate to receive damages equal to as much as three times the amount it paid.
The complaint was filed in U.S. District Court, Eastern District, Southern Division.
Advisor News
- The 6X Formula for leveraging content marketing with AI
- When a home becomes difficult to insure, the plan changes
- The inheritance gap: Helping clients plan for money that hasn’t arrived
- After the midterms: Addressing your clients’ tax concerns
- Berkeley arts tax heads toward passage while public bank measure looks likely to fail
More Advisor NewsAnnuity News
- DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
- John Hancock launches new fixed indexed annuity suite
- Annuities to play a larger role in workplace retirement plans
- FHLBank Pittsburgh Announces Results in 2026 Board Election
- Regulators advance shorter, streamlined annuity buyers guide
More Annuity NewsHealth/Employee Benefits News
- Recent Findings from University of Maryland School of Medicine Has Provided New Data on Managed Care (Medicare Part D utilization management for negotiated drugs and within-class comparators, 2019-2026): Managed Care
- Kansas' rate of children without health insurance tops national average for second year
- Incoming chair of US Senate panel will seek healthcare overhaul, but unclear on details
- New Virginia subsidies help lure people back to health insurance
- High costs limit rural Nebraskans’ access to health care
More Health/Employee Benefits NewsLife Insurance News
- Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
- Military Briefs: November 12-18
- Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
- FHLBank Pittsburgh Announces Results in 2026 Board Election
- New Jackson Study Finds the "Sandwich Generation" Squeeze Comes from More Than Two Sides and It’s Quietly Draining Retirement Savings
More Life Insurance News