Allstate Files $500,000 Insurance Fraud Suit in Pennsylvania

Allstate Insurance Co., Northbrook, Ill., filed a half-million dollar lawsuit against a Philadelphia chiropractic clinic, All-Care Chiropractic, alleging fraudulent billing practices for insurance claims involving patients with personal injury lawsuits.The suit alleges that All-Care owners and operators Richard Walinsky, D.C. and Eileen Nelson Means, D.C. fraudulently billed Allstate for treatments that were never performed, over billed for services that were performed and used improperly licensed and unsupervised personnel for in-home patient visits.

The case was filed in the Bucks County Court of Common Pleas on behalf of Allstate Insurance Company, Allstate Indemnity Company and Deerbrook Insurance Company against Richard Walinsky, D.C., Eileen Nelson Means, D.C., and All-Care Chiropractic, P.C.

The lawsuit accuses the chiropractors of billing Allstate for more than $50,000 in procedures that were never performed or medically unnecessary. The suit also seeks reimbursement for more than $300,000 in billing for procedures allegedly performed by improperly licensed or unsupervised technicians.

According to the filing, All-Care Chiropractic was set up in 1996 to "maximize" billings to insurance companies. The suit says "in order to maximize their revenue, defendants have employed unlicensed or improperly licensed and otherwise unqualified individuals" to perform procedures, which are then billed to an insurance carrier.

"We believe that, among other fraudulent acts, Richard Walinsky and Eileen Nelson Means deliberately misrepresented medical bills and sought payment for procedures that were never rendered," says Edward J. Moran, assistant vice president in charge of Allstate's Special Investigations Unit.

"Allstate is serious about fighting insurance fraud. We have no tolerance for this crime. Our policyholders and consumers in general benefit from our aggressive fight against insurance fraud. Allstate's Special Investigation Unit will continue to partner with law enforcement officials in Pennsylvania and across the country to identify and fight fraud," Moran adds.

Source: Allstate

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