Progressive's Scheme Shrunk Reimbursements, Suit Says

Law360, New York (October 4, 2012, 5:12 PM EDT) -- Progressive Casualty Insurance Co. and claims estimator Mitchell International Inc. were hit Tuesday with a proposed class action that alleges a scheme to depress reimbursements for medical treatment provided to Progressive policyholders through a flawed Mitchell cost analysis program.

Plaintiff Physicians Diagnostic and Rehabilitation Center LLC said Progressive uses a fee review product called Decision Point, licensed from Mitchell, which uses an “analysis engine” that purports to make medical treatment reimbursement determinations in connection with automobile claims.

“The participation of Mitchell and Progressive was essential to...
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