MINNEAPOLIS - A federal lawsuit accuses a diagnostic imaging company and 46 chiropractors of engaging in an elaborate kickback scheme aimed at defrauding Minnesota's no-fault insurance system.
"Today's lawsuit filing affirms what we've been telling lawmakers over the past two years - that insurance fraud is quickly growing in Minnesota," said Insurance Federation of Minnesota President Bob Johnson. "Unfortunately, our laws are so weak that they invite the fraudsters to prey upon unsuspecting citizens by setting up schemes to steal money from the insurance system."
llinois Farmers Insurance and its subsidiaries filed the $1.9 million lawsuit Monday against Mobile Diagnostic Imaging Inc., its owner and the chiropractors.
The Insurance Federation of Minnesota says it's the largest no-fault lawsuit since the state's law was put in place in 1974.
The law requires insurance companies to pay a minimum of $20,000 for medical expenses regardless of who is at fault in an auto accident.
The insurance companies allege that Edina-based Mobile Diagnostic Imaging and its owner, Michael Appleman, paid 46 chiropractors kickbacks for ordering MRIs, which Farmers claims were not always medically necessary.
(Copyright 2013 KARE 11 and The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)