Higher auto insurance rates for New Yorkers is blamed on rampant fraud by unscrupulous medical providers. Health care costs for automobile accident victims in New York increased 42 percent faster than overall medical care costs in the region over the last five years according to an analysis of automobile insurance claim costs by the Fraud Costs New York Coalition and the Property Casualty Insurers Association of America (PCI).

Since the end of 2004, the average amount paid for medical claims related to automobile accidents in New York rose 60.4 percent, nearly 42 points faster than the 18.6 percent growth rate in the Consumer Price Index (CPI) cost of medical goods and services found in the region. “One primary explanation for such a wide discrepancy is automobile insurance fraud committed by medical providers in New York, which remains on the upswing, forcing consumers to pay more for auto insurance,” said Kristina Baldwin, assistant vice president for PCI.

In September the Attorney General’s office announced criminal charges against seven medical professionals and a clinic receptionist for their roles in a fraudulent scheme in which tens of thousands of dollars in phony claims were submitted to insurance carriers.

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Source: News Release – Property Casualty Insurers Association of American Oct 21, 2010