An Illinois doctor is accused of stealing $1,700,000 from medicare and other insurance carriers.
Insurance fraud raises the rates for everyone.
From March 2006 – 2009 this doctor submitted 3,200 bogus claims to medicare and Blue Cross / Blue Shield for surgeries she did not perform.
The Department of Justice and Department of Health and Human Services also announced charges were being filed against 89 medical personnel for fraud totalling about $233,000,000.
Ever wonder why insurance rates go up?
Woman evades jail in insurance scam
A Philadelphia woman was sentenced to probation and 125 hours of community service after pleading guilty for falsely reporting a 2008 Lexus stolen. The insurance carrier paid $42,000 in the scam. An accomplice then hid the vehicle in his garage. He was also charged and pled to reduced charges.
And we wonder why insurance rates go up?
New York cracking down on insurance fraud
While the two people in the above story received only probation, they need to be happy they did not commit their scam in New York. Statistics in New York show that 36% of insurance claims are considered fraudulent or inflated. 22% are considered completely bogus. Those are huge numbers considering the number of insurance policies active.
And we wonder why insurance rates go up.
The New York legislature approved new bills that would:
Make a class D felony for anyone staging a fake car accident. If the fake accident results in serious injury or death the penalty becomes 25 years behind bars.
As a side note, I almost rear ended a vehicle filled with males who were trying to get me to hit them. They slammed on their brakes at a green light. Being an aware driver I stopped in time but the old, heavy truck behind me slammed into my vehicle. Of course, the driver behind me was an uninsured driver to boot. I now have first hand knowledge of fake accidents and how they come about.
Another New York bill allows insurance carriers to back-date cancellations when fraud is involved. A practice that they have seen is consumers applying for auto insurance and paying with a bad check or stolen credit card. Then, they go out and commit fraud by staging an accident. So not only do they sue for (supposed) injuries but their initial payment bounced as well.
Under current laws, Arizona cannot cancel or back date a cancellation if fraud was involved. Most states now allow insurance companies to do this practice.