Los Angeles, Calif.-based Farmers Insurance Exchange has reached a settlement in a lawsuit involving alleged billing fraud by two radiological companies and their owners.
The complaint alleges that two radiological corporations and their owners submitted false and misleading documentation to receive payment for services never provided. The Farmers complaint alleged that the radiological corporations and their owners billed the insurer for 3-D renderings of MRI and CT scans which were never performed in more than two hundred bodily injury and workers’ compensation claims under policies issued by Farmers.
While the defendants did not admit to liability in the settlement, Farmers will receive a monetary settlement, an agreement from the defendants that they will cease and desist from billing Farmers and its customers for 3-D renderings and that any such bills are deemed void and uncollectible.
Farmers is an insurer group of automobiles, homes and small businesses.
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