Allstate Insurance Company Files $1.7 Million Medical Fraud Lawsuit Against Two New York Medical Corporations

Feb 28, 2013, 12:41 ET from Allstate Insurance Company

BROOKLYN, N.Y., Feb. 28, 2013 /PRNewswire/ -- Allstate Insurance Company is seeking to recover $1.7 million against three New York area defendants in its 2nd insurance fraud lawsuit of 2013. Since 2003, Allstate has filed 46 fraud lawsuits in New York State seeking more than $233 million in damages.

The complaint against Gerald Surya, M.D., Sun Medical Care of Nassau, P.C., and Sky Medical, P.C. in the United States District Court, Eastern District of New York, alleges Sun and Sky defrauded Allstate by creating and submitting false, fraudulent and inflated invoices containing excessive charges for unwarranted, unnecessary and undelivered medical treatment and testing.  As a result of the defendants' fraudulent billing scheme, the PCs were not entitled to collect No-Fault insurance benefit payments under New York law.

According to the Insurance Information Institute, no-fault fraud is costing New Yorkers hundreds of millions of dollars year-after-year. "In essence, honest hardworking New Yorkers are paying a 'fraud tax'," said Allison McMahon, Allstate spokesperson. "We need lawmakers to enact meaningful insurance reform that puts the citizens of New York first."

Allstate is joined by other insurers and many New York State leaders in its pursuit for comprehensive reform of the no-fault system.  "The no-fault system is being exploited and responsible citizens are the victims," McMahon said.  "Without the support of lawmakers, incidents of fraud will continue to increase.  We need to work together this legislative session to fix the broken no-fault system."

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer known for its "You're In Good Hands With Allstate®" slogan. Now celebrating its 80th anniversary as an insurer, Allstate is reinventing protection and retirement to help nearly 16 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via and 1-800 Allstate®.

SOURCE Allstate Insurance Company