December 04, 2003

Insurance Firm Must Pay $9.5 Million in Claims Fraud

PORTLAND — A jury has ordered Farmers Insurance Co. to pay $9.5 million to policyholders the company defrauded in Oregon by reducing the payments for their medical expenses after auto accidents. After two days of deliberations, the jury ruled that from 1998 to 1999, Farmers used a formula to reduce the reimbursement to doctors, claiming charges were higher than reasonable compared with the charges of other medical providers in the same geographic area. Posted by Editor at December 4, 2003 02:37 PM