Allstate Insurance Co. filed a $9 million lawsuit yesterday against 10 medical practices, doctors and individuals in Maryland and Washington, D.C., accusing them of defrauding the company for nearly three years.
The lawsuit alleges that the doctors and clinics billed for services that were never rendered and for more expensive services than were administered. The defendants also misrepresented treatments in their medical records, and billed for unnecessary services, said Joe McCormick, an Allstate spokesman.
The alleged fraud, all related to automobile accidents, began in 1996, he said.
The suit was filed in Montgomery County Circuit Court. The company has also filed suits in New Jersey and California this year.
"We're hoping [lawsuits] will show people that are engaging in fraudulent activity and have gotten away with it before that we are serious about fighting fraud and keeping those costs away from our customers," McCormick said.
The suit caps an 18-month investigation by Allstate's Special Investigative Unit in Columbia.
The medical providers and others named in the suit include: Manney and Associates, Columbia; Imaging and Diagnostic Centers of Maryland, Silver Spring; TKA Management, Silver Spring; Langley Park Injury Care Center, Hyattsville; Kenneth Abramowitz PC, Wheaton; and Physicians Plus, Wheaton.
The suit also names Dr. Jim Adams PC, Wheaton; Eastern Market Medical PLLC, Washington; Med 1st LLC, Washington; and Rhode Island Medical, Washington.
Kenneth Abramowitz, a chiropractor in Wheaton, has associations with each of the other nine doctors and clinics, McCormick said.