Days after the Feds busted 10 doctors in a scam insurance no-fault car of 279 million dollars, Governor Cuomo Thursday revealed that the State has already found 135 more medical billing practices that raised red flags for fraud.
After 29 February takedown, the State Department Financial Services sent letters to 135 — especially in the city and Long Island — after finding their billing practices "raised concerns regarding possible no-fault fraud".
The Agency has requested supporting documents treatments charged, and if a physician does not comply within 14 days, you may be banned from the no-fault system.
Investigators say they have already found evidence of doctors "rent" their tax ID number to clinics that submit claims.
"We're going to call them to account and put them out of business no-fault," said Financial Services Superintendent Benjamin Lawsky.
New York car insurance rates in the United States fourth highest. The no-fault system would reduce costs by eliminating the legal battles over that
is to blame, but instead has been plagued by fraud.
Last week's arrest by the FBI and NYPD arrest medical mills throughout the city that were deposited millions of dollars in bad loans.
Feds say that the long-term regime relied on 10 doctors who have submitted false claims for unnecessary treatment and sometimes non-existent
s such as physical therapy and MRI.
The news has found that some doctors lived lavish lifestyles, globe traveling and residing in suburban villas.
On Thursday all 10 doctors and 26 other defendants crammed into a courtroom in Manhattan to learn prosecutors had seized 60 computers and had obtained 10 months of secretly recorded conversations.
Responding to the great bust, Cuomo announced the State would, for the first time, target medical bills which display a template indicating fraud. That could include an unusually high number of treatments for an auto accident victim or a doctor who uses multiple "vendor numbers" to bill insurers.
The State will seek to ban doctors from no-fault system if billing fraud is discovered.
"The State has no tolerance for medical providers or doctors, ripping off the system," said Cuomo, noting that fraud drives up the cost of auto insurance for all New Yorkers.
by Robert Gearty
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