Allstate Settles Medical Bill Review Class Action Suit

Allstate entered into a settlement of a nationwide class action lawsuit involving the insurer’s computerized medical bill review system, Strasen v. Allstate, which has been pending in the Circuit Court of Madison County, Ill., for almost 10 years.

This settlement includes all Allstate and Encompass entities. The Court entered a final order approving the settlement on Nov. 25, 2009.

Plaintiffs alleged that Allstate utilized a computerized medical bill review system provided by ADP which failed to correctly calculate medical expenses from automobile and homeowner’s claims. Allstate continues to believe its medical bill review practices were and are appropriate and fully comply with the law, but agreed to resolve the case on terms Allstate considered fair and appropriate to avoid the burden and expense of continued litigation.

Allstate believes its bill review procedures help policyholders maximize their benefits by reimbursing providers the appropriate amount for services. Allstate’s policy is to try to resolve billing disputes with providers while protecting its policyholders’ interests.

Anyone wishing to participate in the settlement must complete and submit a valid claim form postmarked no later than Feb. 8, 2010. Claim forms can be obtained by visiting Further information about the settlement is available on the Web site.

Individuals with questions about the settlement may also contact plaintiffs counsel Bradley M. Lakin, LakinChapman LLC, at (618) 254-1127.

Source: Allstate Corporation