Allstate files lawsuit against 47 durable medical supply entities

HAUPPAUGE, N.Y., June 21, 2013—As reported by PRNewswire via COMTEX, Allstate Insurance Company is seeking to recover $6.6 million in treble damages against 80 New York and Florida area defendants in its fourth insurance fraud lawsuit of 2013. Since 2003, Allstate has filed 48 fraud lawsuits in New York State seeking more than $237 million in damages.

It alleges that 31 durable medical retail equipment companies and 28 individuals, who allegedly owned one or more of these retail companies, and 16 durable medical wholesale companies and five individuals, who allegedly owned one or more of the wholesale companies, submitted or facilitated the submission of fraudulent and is leading bills and supporting documents to Allstate for reimbursement under New York State’s No-fault Law.

According to the Insurance Information Institute, no-fault fraud is costing New Yorkers 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 is the nation’s largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Visit online at www.allstate.com.