US personal lines insurer Allstate Insurance Company has won a court case that puts an end to fraudulent business and billing schemes carried out by unlicensed medical and chiropractic personnel.
In a lawsuit filed in the Los Angeles County Superior Court, Allstate claimed that Maria Miranda, Frank Rivera and LA Healthcare Management, violated the state’s Insurance Fraud Protection Act.
The violation occurred when they submitted over 390 chiropractic claims to Allstate, which were wrongly generated by unlicensed and untrained personnel, or because the billed treatments did not reflect patients’ physical needs.
Judge William Fahey ordered Miranda and Rivera to pay Allstate $3.9m in penalties, as well as $3.8m in assessments and fees, a total of $7.7m judgement.
Allstate California Field vice president Phil Telgenhoff said, "Submitting even one false insurance claim is more than just a bad idea — it’s fraud, and insurance fraud is a crime."
"Allstate will fight fraud to help protect our customers and keep insurance costs down," Telgenhoff added.
Serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial and Allstate Financial business segment, the company offers auto, home, life and retirement insurance products.