Doctors Banned Due To NY Auto Insurance Fraud

New York Governor Andrew Cuomo recently showed an iron hand in banning health service providers including doctors who have participated in auto insurance fraud.

As the Department of Financial Services (DFS) digs deeper into the elaborate scheme of fraudulent practices of health service providers, taking advantage of NY no-fault auto insurance, 18 doctors and other health service providers had already been banned from practicing in the state. Most of these health service providers are based in New York City.

More doctors and other health practitioners who are believed to have participated in NY auto insurance fraud are expected to be banned in the next days.

Cuomo declared that his administration will not allow those involved in auto insurance fraud be unpunished, that including doctors, as the defrauding NY auto insurance is not only illegal but it is also one of the main reason why honest drivers in the state are experiencing high cost of insurance.

“Doctors and medical service providers who conspire to abuse the system should know that New York State is watching and will not hesitate to take appropriate actions to shutdown fraud when it occurs,” the governor said in a statement to the press.

It has been known that doctors and other medical practitioners connived with other auto insurance fraudsters by billing insurers with treatments whose expense is exaggerated, or with billing insurers with unnecessary treatments or even treatments that have not been administered.

Benjamin Lawsky, Superintendent of Financial Services, said that “A dirty doctor is typically the key ingredient in these schemes and cutting them out can have a major impact.”

New York’s battle against auto insurance fraud had intensified since last year with the governor in the helm. The DFS have regulations that enable them to ban health providers who engage in dishonest practice, or fail to respond to the department’s inquiries.