Allstate has filed three lawsuits seeking a total of $10 million from medical practitioners the company’s special investigations unit accuse of violating New Jersey’s anti-fraud regulations.
The largest of the three is a $5.6 million case for personal injury protection benefits requested by patients of a physician accused of paying middlemen to refer auto accident victims from New Jersey and New York clinics to his surgery center. The physician, who owns the Bergen Passaic Ambulatory Surgery Center in Clifton, N.J., had his medical license suspended in 2010.
"Abuse with respect to prescription drugs is a growing national concern on many levels," states Rich Crist, president of Allstate New Jersey Insurance Company. "Allstate New Jersey's Special Investigations Unit is committed to investigating automobile insurance fraud in our state and protecting all our customers from being victimized."
Allstate is also fighting for $2.2 million from Summit Pharmacy, Inc., and five doctors for diverting automobile accident patients away from their personal pharmacy while still billing the insurance company for drugs filled without a prescription. Moreover, the insurer alleges that some of these prescriptions were filled while the Arizona-based pharmacy was unregistered to do business in N.J., and others by a pharmacist whose license was suspended.
In a third case, Allstate seeks $2.1 million plus damages from a Bergen County doctor who allegedly performed “unnecessary” neurological testing on auto accident patients referred unlawfully through a kickback scheme with a chiropractic practitioner.
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