Progressive, Allstate, Encompass Insurance (through underwriting company Continental Insurance Company), the Mutual Service Insurance Companies (MSI) and Western National Mutual Insurance Group today filed a civil lawsuit with Hennepin County District Court against five chiropractic clinics, their alleged “owners” and four chiropractors. The suit alleges that the defendants organized a scheme to steer accident victims to their clinics in order to defraud the auto insurance companies by billing for unnecessary treatments or for services not performed. The plaintiffs are seeking damages in excess of $3 million.
“It’s estimated that insurance fraud costs each Minnesota household $1,000 a year, primarily in the form of increased insurance premiums,” said Pat McCann, Minnesota special investigations unit (SIU) manager for Progressive.
