It is unclear as to whether New York legislators will be swayed by the recent developments in Florida, but there is no denying that the case for reforming New York's flawed "no-fault" auto insurance law is gaining momentum with some high-profile busts and stiff regulations (See Reporters Notebook on page 12 for the crackdown on unsavory doctors).
On Feb. 29, federal authorities unsealed a substantial indictment implicating 36 suspects for a scheme dating back to at least 2007. The same day, authorities apprehended 35 defendants—including ten doctors and three lawyers—allegedly involved in creating clinics in and around New York City that habitually billed auto insurers for treatments that were either medically unnecessary or never rendered.
According to the indictment, this network of clinics cheated auto insurers out of more than $275 million while taking full advantage of the state's personal injury protection (PIP) system, whereby drivers and passengers can obtain as much as $50,000 in benefits for accident-related injuries, regardless of fault.
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