Insurance
Home›Insurance›Industry & Deals›GEICO faces lawsuit over alleged no-fault billing by B…
GEICO faces lawsuit over alleged no-fault billing by Brooklyn clinics
The federal complaint says the clinics submitted hundreds of claims for care it calls medically unnecessary and inflated, tied to New York's no-fault coverage rules.
GEICO is named in a federal lawsuit alleging two Brooklyn medical practices billed the auto insurer more than $2 million for treatments the complaint says were medically unnecessary and, in many cases, never provided. According to the complaint filed July 24, 2026, in federal court in Brooklyn, the auto insurer sued Kings County Physicians Group and Kings Highway Physicians Group, along with a physician the filing says owned and controlled both, plus unidentified “John Doe” defendants.
The case centers on New York's no-fault system, which requires insurers to cover up to $50,000 per person for necessary health care goods and services after a crash. GEICO alleges the practices treated drivers who reported injuries and then filed hundreds of claims for care described as “medically unnecessary, excessive, illusory, and otherwise non-reimbursable,” using billing codes GEICO says were inflated and services it alleges were provided only “to the extent provided at all.”
The complaint includes examples, such as initial exams billed under higher-level codes that GEICO says call for 45 to 60 minutes of face-to-face time, while the exams themselves ran 10 to 30 minutes. GEICO also alleges shockwave therapy was billed using a code for “high energy” treatment despite device delivery it characterizes as lower-energy radial pressure wave therapy, and it raises a control concern under New York rules, alleging unlicensed laypersons steered patients, dictated treatment plans, and shared in profits.