Geico sues 3 New Jersey ASCs, alleges $5.7M in fraudulent claims

Chevy Chase, Md.-based insurance company Geico is suing three New Jersey ASCs, citing more than $5.7 million in fraudulent insurance claims, according to court documents filed Sept 20. 

The suit filed in New Jersey District Court targets West Orange-based Atlantic Spine Center, Union-based Outpatient USA, and West Orange-based Advanced Spine and Outpatient Surgery Center, accusing them of filing over $5.7 million in thousands of fraudulent claims from 2014 to 2021.

The suit alleges the ASCs filed claims for medically unnecessary services, including spinal surgery, anesthesia, pain management injections and other services.

The services were purported to have been provided to car accident victims eligible for Geico no-fault insurance coverage, according to the lawsuit.

Geico claims that police reports indicated many of the underlying accidents were low-impact, that the patients' vehicles were drivable afterward, and that no one was seriously injured, if at all.

Six physicians operating out of the ASCs are included as defendants in the suit.

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