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
- U.S. debt hits $40 trillion: how to support concerned clients
- Flourish brings private-bank-like cash solution to MassMutual’s network
- Majority of Americans concerned recent market highs are unsustainable
- GLP-1 users choose between medication and retirement saving
- Gen X and millennials seek new retirement model
More Advisor NewsAnnuity News
- Corebridge Financial Introduces Progressive Trigger, a First-of-Its-Kind Index Annuity Strategy Designed to Turn Missed Years into Future Opportunity
- Insurer proposes $1.1M deal to resolve CA teachers’ annuity fee lawsuit
- IMOs get frustrated with slow carrier adoption of faster technology
- New class-action lawsuit targets Delaware Life over annuity disclosures
- A client remarried: Does their annuity still fit?
More Annuity NewsHealth/Employee Benefits News
Life Insurance News