Liberty Mutual sues to stop $2 million New York insurance fraud scheme

The scheme, Liberty Mutual alleges, relied on billing for services including computerized range of motion and muscle strength testing, functional capacity tests, and activity limitation measurement tests. The insurer asserts these services were often medically unnecessary, duplicative, or not eligible for reimbursement under New York’s no-fault insurance laws. In many cases, the complaint alleges, services were provided by independent contractors rather than employees, which, under state law, makes them ineligible for reimbursement.