Doctors accused of insurance scam

By KELLY FAY

Eighteen doctors and health service providers have been banned from billing New York's no-fault auto insurance system. The ban is part of an ongoing investigation being conducted by the Department of Financial Services aimed at putting an end to abuse of no-fault insurance claims by those in the medical community.

"Defrauding the state's no-fault auto insurance system is illegal and drives up costs for honest drivers across the state, and my administration simply will not allow such actions to go unpunished," Gov. Andrew Cuomo said. "Doctors and medical service providers who conspire to abuse the system should know that New York state is watching and will not hesitate to take appropriate actions to shutdown fraud when it occurs."

The investigation began in March of 2012, when the Department of Financial Services uncovered evidence of 135 health service providers taking advantage of the no-fault insurance system. Providers were suspected of giving unnecessary treatment to car accident "victims," billing insurers for unnecessary treatment or treatment that was never provided and loaning out their taxpayer ID cards to fraudulent medical practices that submit fake bills to insurance companies.

As part of a statewide initiative to put an end to the insurance scams, the DFS issued regulations to ban medical service providers determined to be engaging in illegal or dishonest practices, or who fail to respond to the department's inquiries from billing no-fault insurance.

http://www.legislativegazette.com/Articles-Top-Stories-c-2013-11-18-85879.113122-Doctors-accused-of-insurance-scam.html