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December 22, 2020 On Monday in the Eastern District of New York, Geico, Geico Indemnity Co., Geico General Insurance Co., and Geico Casualty Co. filed a complaint against medical professional corporations and limited liability companies in New York and New Jersey, alleging that the entities have been operating a scheme that has billed Geico for thousands of no-fault claims for which the defendants purportedly were not eligible and those that were medically unnecessary and fraudulent.
New York’s no-fault laws require auto insurers to provide up to $50,000 in personal injury protection (PIP) benefits per beneficiary for expenses incurred through seeking medical care after an auto accident, the complaint explained. Once an insured person claims the PIP benefits through their health care provider, the health care provider submits the claim to the auto insurance company in question in order to receive payment; New Jersey has similar laws governing auto insuranc