American Transit defeated a motion to dismiss, filed by various health care providers, in a lawsuit seeking a declaration that American Transit has no obligation to pay claims and to recover the payments that it has made relating to fraudulent and abusive claims made under New York automobile no-fault coverage. The lawsuit was filed in December 2018 in the Supreme Court, New York County against multiple defendants. These included medical doctors, chiropractors, ambulatory surgery centers and related parties.

The complaint alleges, among other things, that (a) the Defendants billed abusively and referred patients to each other to inflate billing and, in many cases, without regard to the patients’ needs and (b) Defendants billed American Transit for unnecessary medical services and/or medical services and treatments never provided to patients. The Complaint further alleges that Defendants billed American Transit for numerous unnecessary manipulations under anesthesia, including for administration of unnecessary anesthesia.

Notably, numerous patients were brought from New York to another State in order to inflate the Defendants’ billing to American Transit, the company says.

“While American Transit appreciates the legitimate use of expert medical services with respect to supporting liability litigation, coopting the automobile insurance no fault system for this purpose is neither appropriate nor is it ethical; and is antithetical to the greater public interest,” stated American Transit.

Greenberg Traurig, LLP joins Short & Billy, P.C. in representing American Transit as the case proceeds against the following remaining defendants: Margarita Moshe, Regina Moshe aka Regina Leviyev, M.D., Yan Moshe aka Yan Leviyev, Leonid Shapiro, M.D., Citimed Services, P.A., Citimedical I, P.L.L.C., Columbus Imaging Center, L.L.C., Drugs R Us Pharmacy, Inc., Dynamic Surgery Center, L.L.C., Excel Surgery Center, L.L.C., and Metro Pain Specialists Professional Corporation.

Ralph Bisceglia, the Chief Executive Officer and President of American Transit, stated that, “American Transit insures many livery drivers. This is a demanding occupation and there are many challenges for the drivers. American Transit is committed to industry efforts to support the drivers. On top of the challenges the drivers face, they should not be pawns used by providers seeking to take advantage of the system and submit improper and/or exaggerated claims.”

Source: American Transit Insurance Company

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