MINNEAPOLIS (AP) — A federal lawsuit accuses a diagnostic imaging company and 46 chiropractors of engaging in an elaborate kickback scheme aimed at defrauding Minnesota's no-fault insurance system.
Illinois Farmers Insurance and its subsidiaries filed the $1.9 million lawsuit Monday against Mobile Diagnostic Imaging Inc., its owner and the chiropractors.
The Insurance Federation of Minnesota says it's the largest no-fault lawsuit since the state's law was put in place in 1974.
The law requires insurance companies to pay a minimum of $20,000 for medical expenses regardless of who is at fault in an auto accident.
The insurance companies allege that Edina-based Mobile Diagnostic Imaging and its owner, Michael Appleman, paid 46 chiropractors kickbacks for ordering MRIs, which Farmers claims were not always medically necessary.
The Star Tribune (http://bit.ly/19NH8LA ) reports Appleman declined to comment.
Information from: Star Tribune, http://www.startribune.com