0:06
Did you know that insurance fraud costs
0:08
Americans over 40 billion per year?
0:10
That's $400 to $700 per family in
0:14
increased premiums. What if the system
0:16
designed to protect us is actually
0:18
making fraud easier? All State and Geico
0:21
are taking action against New York fraud
0:23
schemes that are costing millions. If
0:25
you thought insurance fraud was just
0:26
occasional small-time scams, these
0:29
recent lawsuits reveal something far
0:31
more systematic and concerning. Two
0:34
major insurers, Allstate and Geico, have
0:36
filed lawsuits that suggest widespread
0:38
exploitation of New York's no fault
0:40
insurance system. These cases reveal
0:42
patterns of deception that may indicate
0:44
fundamental problems with the no fault
0:47
insurance system itself.
0:49
All States lawsuit filed on August 13th
0:52
targets a network of New Yorkies and
0:54
wholesalers for an alleged $1.48 million
0:57
fraud scheme. According to All State,
1:00
thesearmacies submitted fraudulent
1:02
claims under New York's no fault auto
1:04
insurance laws for medications that
1:06
violated regulations.
1:08
The lawsuit alleges inflated prices and
1:10
collusion betweenarmacies and
1:12
prescribers to write unnecessary
1:15
All State isn't just seeking financial
1:17
compensation. They want a court ruling
1:19
to prevent thesearmacies from filing any
1:21
more no fault claims.
1:24
Meanwhile, GEICO filed its own lawsuit
1:26
in July against a Brooklyn pharmacy
1:28
claiming 3.5 million in fraudulent no
1:30
fault claims. In a separate case, GEICO
1:34
is also pursuing six New York medical
1:36
suppliers for allegedly orchestrating $2
1:38
million in fake claims. The similarities
1:41
between these cases are striking. Both
1:44
involve abuse of New York's no fault
1:46
system through fraudulent billing and
1:47
questionable prescriptions.
1:50
These lawsuits suggest that New York's
1:51
no fault insurance system may be
1:53
vulnerable to organized fraud schemes.
1:56
The no fault system was designed to
1:58
expedite claims processing. Accident
2:00
victims need care, insurers pay, and
2:02
everyone moves on without lengthy
2:05
However, this efficiency may create
2:08
opportunities for fraud as the system
2:10
relies heavily on trust and
2:13
Both lawsuits highlight similar tactics.
2:16
Inflated bills, questionable
2:18
prescriptions, and coordination between
2:19
healthcare providers. The financial
2:22
impact is significant. Millions of
2:24
dollars in potentially fraudulent claims
2:26
across multiple cases.
2:29
No fault insurance is intended to
2:31
simplify the aftermath of car accidents
2:33
by having each driver's insurance cover
2:35
their own costs regardless of fault.
2:38
This approach reduces litigation but
2:41
depends on honest reporting from medical
2:43
providers and claimants.
2:45
When trust is broken through inflated
2:47
bills or fabricated treatments, the
2:49
entire system suffers, ultimately
2:52
leading to higher premiums for everyone.
2:55
These cases raise important questions
2:57
about whether the no fault system itself
2:58
needs reform to prevent fraud.
3:02
The speed and complexity of the current
3:04
system may create oversight gaps that
3:06
fraudsters can exploit. However,
3:08
eliminating no fault insurance would be
3:10
a major change that could impact how
3:12
accident victims receive timely care.
3:14
For all state and GEICO, these lawsuits
3:17
represent just the beginning of what
3:18
could be years of legal proceedings to
3:20
address the alleged fraud. Other
3:23
insurers will be watching closely as
3:25
unchecked fraud patterns ultimately harm
3:27
all stakeholders in the insurance
3:28
system. The question remains whether
3:31
these lawsuits will lead to broader
3:32
reform or if the no- fault system will
3:35
continue to face similar challenges.
3:38
One thing is certain, the issue of no
3:40
fault insurance fraud is likely to
3:42
remain a significant concern for
3:43
insurers and policy holders alike.
3:47
Thank you for watching this analysis of
3:49
insurance fraud cases. We hope this
3:51
information helps you understand the
3:53
challenges facing the no fault insurance
3:55
system and why these lawsuits matter to
