New York’s insurance industry is backing four bills combating automobile insurance fraud within the state’s no-fault auto insurance system, including one that would make staging auto accidents a felony and another to end fraudulent billing by fly-by-night durable medical equipment providers.
With no-fault fraud in her state on the rise, these bills must be passed soon, Melchionni said. Having Insurance Committee Chairman
NYIA supports S 3547, which would make staging auto accidents a felony, Melchionni said. The bill, offered by Seward, was spurred on by an incident in which a grandmother from
NYIA also supports Seward's S 3540, which would end fraudulent billing by fly-by-night durable medical equipment providers who are in business to distribute essential medical equipment. However, too often they send equipment that the patient either did not need or in some cases never received. The bill would require the providers to be approved by the National Supplier Clearinghouse as an authorized
Legislation (S 1959/A 3774) offered by Sen.
And NYIA backs a Seward bill (S 3545) requiring medical providers to prove that treatment is medically necessary. To date, medical providers do not have to substantiate that medical treatment is necessary when billing for auto insurance claims, NYIA said in a bill summary.