Personal Injury Law

United Automobile unhappy being caught denying payments to medical providers

By Brian F. LaBovick, Esq.

United Automobile Insurance Company (United) is being sued for unpaid claims.  In a recent press release, United complained about the injustice of being sued for small sums.  Brian LaBovick, Managing Shareholder of LaBovick & LaBovick, P.A., a Florida civil litigation firm, notes, 'We are suing United for failing to properly pay medical providers small sums on many claims.  The numbers add up to a staggering amount; and its all sitting in United's bank account.  Imagine how you would feel if every day your boss deducted $3.89 from your pay.  It would be unfair.  United deducted small sums from medical providers because they thought the providers would not sue for such small sums.'

Under the law medical providers must timely bill automobile insurance for treatment rendered to auto accident victims.  The automobile insurance industry used the legislature to set the amount doctors and other medical providers are paid.  The doctors understand that they are only paid the legally regulated amount.  United Automobile is refusing to pay the regulated amount. They deduct some amount and make the decision not to pay the medical providers the amounts required by law.  United knows that even though the doctor was paid the wrong amount the doctor is not permitted to sue United.  First the doctor must send a special letter called a Demand to United. 
The Demand warns United that they did not pay properly and it requests proper payment.  United has an additional 30 days to pay the medical providers.  If United refuses to properly pay the doctor's bill then the doctor can sue United to force them to pay the proper amounts.  How many times should a doctor or medical provider be denied proper payment by United before seeking help?  How much is the 'right amount' to be ripped off before a doctor sues?  Should the doctor wait for 1000 under-paid charges?  How much money is United permitted to deny the medical providers before the doctor or medical provider is justified in standing up for their rights!

United Automobile Insurance Company's propaganda argues that being sued hundreds of times for small sums is unfair.  They feel that small lawsuits are a drag on our court system.  They say that the law firm which is bringing them to justice for improperly paying claims is 'clogging' up the court system and 'wasting' taxpayer money!  But who is really 'gaming' the legal system?  United Automobile underpays hundreds if not thousands of claims.  They are then sent Demand letters.  They decide not pay the claims.  They decide to refuse to settle the claim after reviewing the Demand letter.  Now they are acting shocked that they are being sued.

The CEO of United Automobile Insurance Company, Richard Parrillo stated: 'It just doesn't make sense to tie up the courts for a measly $3.89 so that an attorney can take home tens of thousands of dollars in fees… This is an abuse of the justice system…  The firm is demanding that taxpayers and, ultimately, insured drivers pay for them.'  Mr. LaBovick responded to that argument; 'How dare United create thousands of civil disputes, intentionally deny payment they owe, even after a legally proper Demand is submitted, and then stand on a soap box claiming there is an 'injustice' because they are being brought to justice.  If American citizens can't use the court system to solve civil disputes then our entire system of justice has failed.  Remember United is not the victim, they are the perpetrator of the wrongful act.'  This is similar to a criminal saying that using government money to prosecute misdemeanor crimes is a waste of the taxpayer's money because there are so many people are committing them and who really cares about criminals who are going to spend less than a year in jail!

In their blog United Automobile tried to equate their improper payment of claims with the righteous fight against fraud.  Certainly United should never be sued on a fraudulent charge or even have to pay a fraudulent claim.  However, none of the lawsuits that were filed by LaBovick & LaBovick, PA against United Automobile were investigated for fraud.  These claims were for MRI centers, hospitals and medical providers who simply did not have their bill paid properly.  United paid the bills, but they failed to pay the right amount.  They know these are not fraudulent bills.  There is no argument that any of the denied claims are fraudulent.  The only reason United even mentions the word fraud is to diminish public support for bringing the Insurance giant to justice.

Finally United complained that Gulfstream MediGroup, LLC, a company which acts as an intermediary between doctors, medical providers and insurance companies, is owned by Brian F. LaBovick.  United is trying to turn the attention away from their behavior.  The question is not about who owns the collection company.  The question is "why these properly billed claims were not being paid?."  If United would pay the claims properly, no one could sue them.  The most important part of the process is controlled by United. 

LaBovick points out that 'United alone determines if they want to properly pay a doctor's bill.  Our firm acts as civil justice prosecutors.  We handle personal injury cases, employment disputes, securities litigation and insurance claims.  United can end this litigation immediately by doing the right thing.  The choice is United's.  Our role is to hold United accountable and to bring them to justice.  Mr. Parrillo, CEO of United, wants to pretend United is a victim.  United however earned millions in profits last year and it is our position that when his company fails to follow the law they should be made to properly pay their claims.'

LaBovick & LaBovick, PA, Civil Justice Prosecutors, A Civil Litigation Law Firm is committed to bringing the insurance industry to justice.  LaBovick & LaBovick, PA is located in Palm Beach Gardens, Florida.  The firm employs attorneys, billing professionals and specially trained paralegals to prosecute auto accident related claims, insurance disputes, employment law cases and securities litigation.

Full post as published by LaBovick Injury Law Blog on April 28, 2010 (boomark / email).