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Allstate Insurance Company Files $1.7 Million Medical Fraud Lawsuit Against Two New York Medical Corporations

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Thu Feb 28, 2013 12:41pm EST

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BROOKLYN, N.Y.,  Feb. 28, 2013  /PRNewswire/ -- Allstate Insurance Company is
seeking to recover  $1.7 million  against three  New York  area defendants in
its 2nd insurance fraud lawsuit of 2013. Since 2003, Allstate has filed 46 fraud
lawsuits in  New York State  seeking more than  $233 million  in damages.  

The complaint against Gerald Surya, M.D., Sun Medical Care of  Nassau, P.C., and
Sky Medical, P.C. in the United States District Court, Eastern District of  New
York, alleges Sun and Sky defrauded Allstate by creating and submitting false,
fraudulent and inflated invoices containing excessive charges for unwarranted,
unnecessary and undelivered medical treatment and testing.  As a result of the
defendants' fraudulent billing scheme, the PCs were not entitled to collect
No-Fault insurance benefit payments under  New York  law.

According to the Insurance Information Institute, no-fault fraud is costing New
Yorkers hundreds of 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  (NYSE: ALL) is the nation's largest publicly held
personal lines insurer known for its "You're In Good Hands With Allstate"
slogan. Now celebrating its 80th anniversary as an insurer, Allstate is
reinventing protection and retirement to help nearly 16 million households
insure what they have today and better prepare for tomorrow. Consumers access
Allstate insurance products (auto, home, life and retirement) and services
through Allstate agencies, independent agencies, and Allstate exclusive
financial representatives in the U.S. and  Canada, as well as via 
www.allstate.com  and 1-800 Allstate.  

SOURCE  Allstate Insurance Company


Jessica Proud, +1-914-438-5325

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