For years personal injury insurance companies have been claiming fraud is getting more and more out of hand. Over the past several years, even with an incredibly poor economy we've seen companies like State Farm have record setting profits of $800 Million in 2009 and $1.2 Billion in 2010.
So with these claims come suspicion as to their motivation. Why would a company and an industry that's doing so well and so profitable claim fraud is killing their profits and causing greater losses to their company??
Profits. Pure and simple.
According to some, the claims of fraud are a "smokescreen to hide padded profits".
This wouldn't be the first time the public trust has been compromised, politicians in hand in order for corporate profits (anyone remember Fannie & Freddie??).
Read more in this great article entitled: Claude Hanuschak: PIP fraud is exaggerated
So when the politicians start with the TV and Radio ads blaming your local doctors and attorneys, remember this blog post and Claude's words... PIP Fraud Is Exaggerated; all because they want to charge YOU higher premiums!
Showing posts with label personal injury. Show all posts
Showing posts with label personal injury. Show all posts
Friday, January 20, 2012
Monday, August 8, 2011
Florida PIP; One Newspaper Call For Repairs - Not Replacement.
The Orlando Sentinel weighs in on the upcoming battle that will surely pit the big business auto insurers against your local doctor and, if you drive a car, against you.
Pointing out that if you "Remove the PIP requirement, motorists will pay substantially more for their health insurance, which increasingly would cover auto injuries. More deadbeats also will drive without insurance, forcing others to pay for their care after accidents".
The Orlando Sentinel is calling for repairs of the PIP system, not replacing the system with something else. "Where it looks like you'll save on auto insurance, you'll end up paying more for health insurance", points out the newspaper.
The auto insurers also would love to replace a diminished personal injury protection (PIP) system with one mandating more expensive — and more profitable — bodily-injury protection. Let's remember, this is big business and it's all about big profits. Under the current system, last year (2010) State Farm's profits surpassed the billion dollar mark, up from $900 million in 2009.
So, with profits so high why all the complaints? Well, quite frankly it's a chance to change the rules of the game to favor big insurance even greater than they do now.
The Orlando Sentinel has it right, don't scrap the current PIP program, rather have our legislators roll up their sleeves and fix what's broken in the current system. And, quite frankly it's not much. No matter what business, industry or profession, you will find a few bad apples. But to throw out an entire basket of good apples because there are a few bad ones seems like a waste of a lot of good apples. It's time for our legislature to pick out the bad apples and find out how they got there, then fix that part of the system.
If you had one bad employee would you close your business? or would you retrain or even re-hire a new one?
For more on the Orlando Sentenal's sentiments, click here for their entire article.
FPIB
Pointing out that if you "Remove the PIP requirement, motorists will pay substantially more for their health insurance, which increasingly would cover auto injuries. More deadbeats also will drive without insurance, forcing others to pay for their care after accidents".
The Orlando Sentinel is calling for repairs of the PIP system, not replacing the system with something else. "Where it looks like you'll save on auto insurance, you'll end up paying more for health insurance", points out the newspaper.
The auto insurers also would love to replace a diminished personal injury protection (PIP) system with one mandating more expensive — and more profitable — bodily-injury protection. Let's remember, this is big business and it's all about big profits. Under the current system, last year (2010) State Farm's profits surpassed the billion dollar mark, up from $900 million in 2009.
So, with profits so high why all the complaints? Well, quite frankly it's a chance to change the rules of the game to favor big insurance even greater than they do now.
The Orlando Sentinel has it right, don't scrap the current PIP program, rather have our legislators roll up their sleeves and fix what's broken in the current system. And, quite frankly it's not much. No matter what business, industry or profession, you will find a few bad apples. But to throw out an entire basket of good apples because there are a few bad ones seems like a waste of a lot of good apples. It's time for our legislature to pick out the bad apples and find out how they got there, then fix that part of the system.
If you had one bad employee would you close your business? or would you retrain or even re-hire a new one?
For more on the Orlando Sentenal's sentiments, click here for their entire article.
FPIB
Monday, April 4, 2011
Claims Of Personal Injury PIP Fraud Are Grossly Exaggerated
Brilliance in just a few words. As in all professions, those that commit fraud are an extreme minority. They are the proverbial "squeaky wheel" that gets the oil. That being said, the author of this article points out that PIP fraud accounts for less than 1% of all the insurance fraud relating to automobile accidents. Yest companies like United Automobile & State Farm continue to pound the legislature with ridiculous claims that fraud is the industry standard rather than the exception to the rule. Let's not forget that with all the alleged growing fraud, State Farm still posted record profits of $800 Million in 2009 and $1.8 Billion in 2010. Wow, who knew that fraud would increase their year to year profits so much ? I wonder how that happened.
Anyway, here's a link to a fresh little article about the often hidden truths - Click here, read & enjoy
Wednesday, March 16, 2011
Proposed Florida Legislation Calls For "Fraud Tax"???
Here in Florida, a House subcommittee this morning approved a controversial bill that would limit fees for attorneys who sue insurance companies in disputes about so-called PIP claims...and here we go again.
Insurance companies cry foul when it comes to fraud because they say they are losing so much money due to fraudulent claims. This year not only were they promoting their agenda regarding PIP fraud and staged accidents, but suddenly sink holes too.
Please realize that an insurance company is a business like any other. So they try to wield their political influence in such a manor as to gain any business advantage in their market. Remember, they are in business to make a profit. And, there's nothing wrong with that. But when you run a company like State Farm and constantly tell people you're losing money to fraud when in 2009 you made a paltry $800,000,000.00 profit (yes, that's 800 million) and then in 2010 you increase your profits to $1,800,000,000.00 profit (that's 1.8 Billion in profit)...yet you continue to cry to your legislatures that fraud is continuing to harm your business, who do you think you're fooling?
No doubt that fraud should be stopped for no other reason than it's fraud and it's wrong. But if the stated statistics are true, then it seem that with the increase in fraud comes an increase in insurance company profits. I'm not sure how that works, but it seems to be the case.
But with all of the efforts that have taken place, one of the biggest reasons for a change in legislation is because fraud costs the consumers just way too much money...AND it's taking money out of the consumer's pockets. Yet, with all the legislation, with all the hoopla, with all the incredible profits posted by these insurance companies, I have yet to see one of them lower their premiums. None!
When do the consumers get to save money? How much does someone like State Farm or the others have to profit by to get them to stop raising rates? Maybe $1.9 Billion and we get a discount? Excuse me but I won't hold my breath.
The real fraud is that this is a game to the insurance companies. They cry fraud, they get their PR companies to get article after article in the newspapers and stories on TV all to justify their raising your rates... Good luck to them, let's see if you can make a $2-Billion Dollar profit in 2011.
Seems like in a down economy, being an insurance company would have been the best bet. People pay you for insurance and you get to deny their claims until an attorney calls you on it. Now, they want to limit an attorney's ability to protect the rights of citizens. Assuring their ability to increase their profits and rake you over the coals on their way to the bank to deposit their profits.
http://www.healthnewsflorida.org/top_story/read/state_officials_target_fraud_tax
Insurance companies cry foul when it comes to fraud because they say they are losing so much money due to fraudulent claims. This year not only were they promoting their agenda regarding PIP fraud and staged accidents, but suddenly sink holes too.
Please realize that an insurance company is a business like any other. So they try to wield their political influence in such a manor as to gain any business advantage in their market. Remember, they are in business to make a profit. And, there's nothing wrong with that. But when you run a company like State Farm and constantly tell people you're losing money to fraud when in 2009 you made a paltry $800,000,000.00 profit (yes, that's 800 million) and then in 2010 you increase your profits to $1,800,000,000.00 profit (that's 1.8 Billion in profit)...yet you continue to cry to your legislatures that fraud is continuing to harm your business, who do you think you're fooling?
No doubt that fraud should be stopped for no other reason than it's fraud and it's wrong. But if the stated statistics are true, then it seem that with the increase in fraud comes an increase in insurance company profits. I'm not sure how that works, but it seems to be the case.
But with all of the efforts that have taken place, one of the biggest reasons for a change in legislation is because fraud costs the consumers just way too much money...AND it's taking money out of the consumer's pockets. Yet, with all the legislation, with all the hoopla, with all the incredible profits posted by these insurance companies, I have yet to see one of them lower their premiums. None!
When do the consumers get to save money? How much does someone like State Farm or the others have to profit by to get them to stop raising rates? Maybe $1.9 Billion and we get a discount? Excuse me but I won't hold my breath.
The real fraud is that this is a game to the insurance companies. They cry fraud, they get their PR companies to get article after article in the newspapers and stories on TV all to justify their raising your rates... Good luck to them, let's see if you can make a $2-Billion Dollar profit in 2011.
Seems like in a down economy, being an insurance company would have been the best bet. People pay you for insurance and you get to deny their claims until an attorney calls you on it. Now, they want to limit an attorney's ability to protect the rights of citizens. Assuring their ability to increase their profits and rake you over the coals on their way to the bank to deposit their profits.
http://www.healthnewsflorida.org/top_story/read/state_officials_target_fraud_tax
Thursday, November 4, 2010
United Automobile Insurance Company Tactics Get The Boot By The Supreme Court of Florida & Set New Legal Precident
No longer can an insurance company use a "No-Show" at an IME as the basis to deny a claim. Since EUO's are not part of the PIP statute, one can argue that a "No-Show" at an EUO also cannot be used as the basis to deny a claim.
The decision is still hot off the presses as it came down earlier today. To see all the details click on this link Cluster Medical Center a/a/o Maximo Masis v United Automobile Insurance Company
Friday, February 12, 2010
Cookie Cutter Notes? Cookie Cutter Treatment Plan? You Better Read This...
$3.9 Million Verdict Sends Strong Anti Fraud Message
Facts at a glance:
•An Orlando jury returned a verdict yesterday ordering Irving Colvin, M.D., Robert Colvin, and Physicians Injury Care Center (PICC) to pay State Farm Mutual Auto Insurance Company® $3.9 million in compensatory damages and $750,000 in punitive damages.
•The State Farm lawsuit claimed PICC (and owners Dr. Irving Colvin and Robert Colvin) created a pre-determined treatment protocol for auto accident patients with a one-size-fits-all application in order to maximize payment to the clinic.
•The unanimous jury found Robert Colvin, Dr. Irving Colvin, and PICC liable for Fraud, Unjust Enrichment, and violations of Florida’s Deceptive and Unfair Trade Practices Act.
•Insurance fraud costs the property-casualty insurance industry--and its customers--about $30 billion a year according to the National Insurance Crime Bureau (NICB).
Read the original press release by clicking here
Helpful Links
http://www.statefarm.com/insurance/claim_center/ins_claims_fraud.asp - for more information from State Farm about reporting fraud.
Full Story
Florida - In a verdict yesterday, an Orlando jury ordered Irving Colvin, M.D., Robert Colvin, and Physicians Injury Care Center (PICC) to pay State Farm Mutual Auto Insurance Company® $3.9 million in compensatory damages and $750,000 in punitive damages. The court also released State Farm and its customers from any obligation to pay outstanding medical bills from PICC.
According to State Farm’s lawsuit, PICC (and owners Dr. Irving Colvin and Robert Colvin) created a pre-determined treatment protocol with a one-size-fits-all application for patients who came into their office following an automobile accident. The treatment protocol was rarely altered to meet the individual recovery needs of the patient. The protocol was designed to maximize payment to the clinic.
In returning the verdict in favor of State Farm, a unanimous jury found Robert Colvin, Dr. Irving Colvin, and PICC liable for Fraud, Unjust Enrichment and violations of Florida’s Deceptive and Unfair Trade Practices Act.
"We hope this verdict sends a loud and clear message to those who choose to commit insurance fraud,” said Russ Kile, State Farm Special Investigative Unit Claim Section Manager for Florida. “State Farm is committed to fighting insurance fraud.” Nationally, State Farm has more than 1,300 employees in 160 special units who investigate suspicious claims and work with law enforcement, the NICB and state fraud bureaus to combat the insurance fraud problem.
Fraud drives up the cost of insurance, and can add $200 to $300 to insurance premiums paid by the average American household. Insurance fraud costs the property-casualty insurance industry--and its customers—more than $30 billion a year, according to the National Insurance Crime Bureau (NICB). The NICB works with law enforcement to curb insurance fraud and organized vehicle theft.
Contact: Michal Connolly, State Farm Public Affairs Specialist, (863) 318-3088
______________________________________________
Do you have some important information regarding the medical/chiropractic/legal practice of personal injury in the State of Florida? News on Legislation in Tallahassee? New Findings From The Courts? IME Doctors playing games? Insurance company not paying bills? Please submit it to us for posting. Click here to email us your Florida Personal Injury Blog News
Facts at a glance:
•An Orlando jury returned a verdict yesterday ordering Irving Colvin, M.D., Robert Colvin, and Physicians Injury Care Center (PICC) to pay State Farm Mutual Auto Insurance Company® $3.9 million in compensatory damages and $750,000 in punitive damages.
•The State Farm lawsuit claimed PICC (and owners Dr. Irving Colvin and Robert Colvin) created a pre-determined treatment protocol for auto accident patients with a one-size-fits-all application in order to maximize payment to the clinic.
•The unanimous jury found Robert Colvin, Dr. Irving Colvin, and PICC liable for Fraud, Unjust Enrichment, and violations of Florida’s Deceptive and Unfair Trade Practices Act.
•Insurance fraud costs the property-casualty insurance industry--and its customers--about $30 billion a year according to the National Insurance Crime Bureau (NICB).
Read the original press release by clicking here
Helpful Links
http://www.statefarm.com/insurance/claim_center/ins_claims_fraud.asp - for more information from State Farm about reporting fraud.
Full Story
Florida - In a verdict yesterday, an Orlando jury ordered Irving Colvin, M.D., Robert Colvin, and Physicians Injury Care Center (PICC) to pay State Farm Mutual Auto Insurance Company® $3.9 million in compensatory damages and $750,000 in punitive damages. The court also released State Farm and its customers from any obligation to pay outstanding medical bills from PICC.
According to State Farm’s lawsuit, PICC (and owners Dr. Irving Colvin and Robert Colvin) created a pre-determined treatment protocol with a one-size-fits-all application for patients who came into their office following an automobile accident. The treatment protocol was rarely altered to meet the individual recovery needs of the patient. The protocol was designed to maximize payment to the clinic.
In returning the verdict in favor of State Farm, a unanimous jury found Robert Colvin, Dr. Irving Colvin, and PICC liable for Fraud, Unjust Enrichment and violations of Florida’s Deceptive and Unfair Trade Practices Act.
"We hope this verdict sends a loud and clear message to those who choose to commit insurance fraud,” said Russ Kile, State Farm Special Investigative Unit Claim Section Manager for Florida. “State Farm is committed to fighting insurance fraud.” Nationally, State Farm has more than 1,300 employees in 160 special units who investigate suspicious claims and work with law enforcement, the NICB and state fraud bureaus to combat the insurance fraud problem.
Fraud drives up the cost of insurance, and can add $200 to $300 to insurance premiums paid by the average American household. Insurance fraud costs the property-casualty insurance industry--and its customers—more than $30 billion a year, according to the National Insurance Crime Bureau (NICB). The NICB works with law enforcement to curb insurance fraud and organized vehicle theft.
Contact: Michal Connolly, State Farm Public Affairs Specialist, (863) 318-3088
______________________________________________
Do you have some important information regarding the medical/chiropractic/legal practice of personal injury in the State of Florida? News on Legislation in Tallahassee? New Findings From The Courts? IME Doctors playing games? Insurance company not paying bills? Please submit it to us for posting. Click here to email us your Florida Personal Injury Blog News
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