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12/24/2004 FARMINGTON HILLS, Mich. -
Allstate Insurance Company has filed a declaratory judgment action (DJA) against Broe Rehabilitation Services, Inc. and the owners, Timothy and Eleanor Broe, for $5.2 million. The DJA includes: payment by mistake of fact; fraudulent concealment; insurance fraud; breach of contract; unjust enrichment; and violation of the Michigan No-Fault Act.
The investigation of Broe Rehabilitation Services, Inc. et al began in December 2002. The DJA charges laypersons improperly incorporated and owned a rehabilitation clinic. Physicians, physical therapists, occupational therapists, psychologists and laypersons were hired to provide medical, nursing and rehabilitative services. Broe Rehabilitation Services, Inc. was involved in illegal self-referral, fee splitting, and kick-backs with the medical professionals at the facility.
The clinic billed for services not rendered.
"In reviewing our records with Broe Rehabilitation Services, Allstate has uncovered alleged improper billing procedures conducted by the clinic. As a commitment to our Allstate customers, we will diligently pursue this issue for timely resolution," said Edward Moran, Assistant Vice President of the Allstate Property Casualty Claim Service Organization.
The DJA will demand reimbursement in excess of $25,000 as allowed by Michigan Statute for payments issued by Allstate Insurance Co. Payments issued by Allstate total $5.2 million. There are a total of 39 claimants, whom Allstate Insurance Co. will assist in securing new treatment programs and relocation for Allstate clients currently residing in Broe facilities.
The filing date for the declaratory judgment action is December 21, 2004.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate®" slogan, Allstate helps individuals in more than 16 million households protect what they have today and better prepare for tomorrow through more than 12,900 exclusive agencies and financial specialists in the U.S. and Canada. Customers can access Allstate products and services through Allstate agencies, or in select states at allstate.com and 1-800 Allstate®. EncompassSM and Deerbrook® Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group provides life insurance, annuity, retirement, banking and investment products through distribution channels that include Allstate agencies, independent agencies, worksite, financial institutions and broker-dealers.
FOR MORE INFORMATION:
Contact:Lisa T. Finney, Corporate Relations, 248-994-9394