Design Highlights
- GEICO’s lawsuit targets multiple Florida chiropractic clinics for allegedly inflating bills and abusing PIP benefits, seeking over $2 million in damages.
- The lawsuit claims fraudulent activities began no later than 2020, involving unnecessary treatments and inflated charges.
- South Florida Diagnostic faces allegations of hundreds of fraudulent imaging charges, while Medlink is accused of numerous fraudulent PIP claims.
- This case is part of a broader crackdown on PIP fraud in Florida, with another $26 million scheme involving 14 clinics under investigation.
- Legal outcomes could significantly impact operational sustainability for the implicated clinics and reshape the PIP fraud landscape in Florida.
In a bold move that has the legal world buzzing, GEICO has thrown down the gauntlet with a hefty lawsuit against several chiropractic clinics in Florida. The insurance giant filed its complaint in the U.S. District Court for the Southern District of Florida, Miami Division. Spanning a staggering 100 pages, the lawsuit accuses the clinics of engaging in inflated billing practices, unnecessary treatments, and a reckless abuse of Personal Injury Protection (PIP) benefits. It’s a classic case of “you’ve got to be kidding me,” and GEICO isn’t holding back.
The defendants in this drama include Chiropractic Clinics of South Florida, Medlink, and South Florida Diagnostic. According to the lawsuit, these clinics allegedly concocted a scheme involving thousands of fraudulent charges for chiropractic services, physical therapy, and patient exams. They even threw in shockwave treatments for good measure.
Chiropractic Clinics of South Florida, Medlink, and South Florida Diagnostic face accusations of a massive fraudulent billing scheme.
Medlink didn’t escape scrutiny either, facing accusations of hundreds of fraudulent PIP charges. And then there’s South Florida Diagnostic, which is reportedly racking up hundreds of fraudulent charges just for diagnostic imaging, particularly MRIs. It’s impressive how they managed to inflate bills and push medically unnecessary treatments while violating Florida’s Motor Vehicle No-Fault Law.
GEICO isn’t just throwing around accusations for fun; they’re seeking recovery of over $2 million. Yep, that’s a two followed by six zeros. They estimate total damages exceed a whopping $2.8 million from the alleged fraud that supposedly began no later than 2020.
And this isn’t the only PIP fraud they’re tackling. Oh no, there’s a $26 million scheme allegedly involving 14 clinics and a telehealth company, plus a separate $1.37 million billing scheme against two clinics. It’s like a never-ending episode of a legal drama.
This isn’t GEICO’s first rodeo with lawsuits related to PIP fraud. They’ve previously sued various clinics for unnecessary treatments and equipment. They even settled a class action related to underpayments to medical providers in Florida. With all this recent action, it’s clear GEICO is serious about cracking down on fraudulent claims.
The stakes are high. GEICO is looking for a declaration to deny over $75,000 in pending fraudulent claims. If they succeed, it could send shockwaves through the PIP landscape in Florida. Much like travel insurance providers who only reimburse nonrefundable costs after refunds are declined, GEICO’s legal strategy focuses on recovering funds where legitimate reimbursement pathways have been exhausted or abused.
For these chiropractic clinics, the road ahead looks bumpy, and the legal consequences could be substantial. One thing’s for sure: the insurance world is watching this case unfold closely.
