Insurance regulators plan to start kicking crooked doctors out of New York’s no-fault program next month, calling them linchpins in fake-accident scams that cost insurers and policyholders hundreds of millions of dollars.
New regulations are set to take effect June 12.
The Department of Financial Services sent letters in March to 135 doctors, chiropractors, acupuncturists and physical therapists. The agency demanded that they explain suspect billing patterns and threatened to remove them from the program if they didn’t respond.
Superintendent Benjamin Lawsky says the letters are “the tip of the iceberg.”
Medical practitioners can challenge removal attempts at hearings.
No-fault insurance lets drivers and passengers claim up to $50,000 for accident injuries regardless of who causes an accident.
The state Senate is pushing tougher penalties for others in the scams.
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