According to an article in Insurance Journal, twelve states have no-fault insurance systems, which lets drivers and passengers claim up to $50,000 for injuries resulting from an automobile accident, regardless of who is responsible. Claimants aren’t the only people that commit insurance fraud. Doctors are involved in staging accidents and running shady treatment centers.
Benjamin Lawsky, Superintendent of The New York Department of Financial Services, stated that, “For every fraudulent medical mill, there’s got to be a doctor attached to it or they couldn’t do the billing. The doctor is sort of at the top of this medical mill pyramid. So we have to go after these dirty doctors.”
Being that New Jersey and Pennsylvania carry the no-fault policy, many of ICU Investigation’s clients and our investigators need to be especially careful of sham doctors that are willing to commit fraud to earn an extra buck. The extreme losses that result from these faked medical claims will most definitely transform into higher insurance premiums.