Auto Insurer Owes For Medicare Patient Injuries, Suit Says

Law360, New York (March 30, 2017, 5:49 PM EDT) -- Three Medicare Advantage organizations hit auto insurer Erie Indemnity Co. with a proposed class action Wednesday in Pennsylvania federal court, alleging it failed to reimburse them for claims arising from auto accidents.

MAO-MSO Recovery LLC, MSP Recovery LLC and MSPA Claims 1 LLC claim Erie and its subsidiaries violated a federal law that holds private auto insurance companies responsible for claims of Medicare enrollees injured in car accidents.

“Defendants have derived substantial profits by placing the burden of financing medical treatments for their policyholders upon the shoulders of MAOs,” the complaint alleges, also stating,“[Erie’s] failure to reimburse plaintiffs and class members...

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