Allstate Insurance sues slew of DME entities

Monday, June 24, 2013

HAUPPAUGE, N.Y. – Allstate Insurance seeks to recover $6.6 million in damages for alleged medical insurance fraud from 47 New York- and Florida-based DME entities and owners, according to a press release. The complaint, filed in the U.S. District Court for the Eastern District of New York, alleges that the DME companies, including 31 retail and 16 DME wholesale companies, submitted or facilitated the submission of fraudulent and misleading bills to Allstate Insurance for reimbursement, the release noted. Allison McMahon, an Allstate spokeswoman, believes the alleged violations in New York are the result of DME companies exploiting the state’s no-fault insurance law, which provides insured parties indemnification for losses regardless of fault in the incident. “We need to work together this legislative session to fix the broken no-fault system,” she stated.