Fraud by Medical Providers Force New Yorkers to Pay Significantly Higher Auto Insurance Rates

Since the end of 2004, the average amount paid for medical claims related to automobile accidents in New York rose 60.4 percent, nearly 42 points faster than the 18.6 percent growth rate in the Consumer Price Index (CPI) cost of medical goods and services found in the region. One primary explanation for such a wide discrepancy is automobile insurance fraud committed by medical providers in New York, which remains on the upswing, forcing consumers to pay more for auto insurance.

Fraud and lawsuit abuse by medical providers force New Yorkers to pay significantly higher insurance rates

Automobile insurance fraud in New York is once again on the upswing and it’s costing you money each and every day. It is estimated that no-fault fraud costs New Yorkers hundreds of millions of dollars.  The New York Alliance Against Insurance Fraud reports that excessive billings by medical mills, fraudulent companies that provide few if any real health care services to the public, are a key factor in driving New York State’s no-fault automobile insurance fraud crisis.

What this means to New Yorkers:

• You pay the fourth highest automobile liability premiums in the nation.
• You pay 53 percent more for auto liability insurance than the national average.
• You pay 25 percent more than drivers in other no-fault states.
• Drivers in the Bronx pay almost six-and-a-half more for no-fault auto insurance than someone living in Albany.

No-Fault costs are surging:

• New York’s average no-fault claim cost is 64 percent higher than the national median of $5,289.
• The average claim has increased by $3,075, or 55 percent, since 2004.
• The medical cost of the average claim has increased much faster than health care costs since 2004 (60.4 percent compared to 18.6 percent).
• Health care charges Downstate have risen 40 percent since 2006, while charges Upstate have fallen by 16 percent. The average yearly amount charged for treating no-fault victims is roughly 3 times higher Downstate than Upstate.

Fraud Costs New York:

• These higher costs and premiums primarily impact the Downstate region of New York City, Nassau, Suffolk, Westchester Counties and Queens, Manhattan and Staten Island.
• Some unscrupulous health care providers in Downstate New York are gaming the no-fault system by encouraging often unnecessary and excessive use of health care services and abusing the legal system.
• Rampant fraud contributes to New York City’s higher-than-average medical losses per claim and higher-than-average no-fault rates

 This article has been proivded from http://www.i-issues.com/new-york