Lawsuit Claims State Farm Improperly Reduces Payments for Auto Accident Injury Claims

New to ClassAction.org? Read our Newswire Disclaimer

Florida chiropractic treatment provider Coastal Wellness Centers, Inc. has filed a proposed class action against State Farm Mutual Automobile Insurance Company on behalf of a patient who was injured in a May 2014 car accident. According to the case, the injured woman executed an Assignment of Insurance Benefits, Release & Demand effectively authorizing plaintiff Coastal Wellness Centers to bill State Farm directly for medical services provide.

“In other words, [Coastal Wellness Centers] stepped into [the insured’s] shoes and became a party to the insurance contract,” the case explains.

Coastal Wellness Centers claims that the payments remitted by State Farm for the woman’s treatment were allegedly improperly reduced by two percent in violation of Florida law. In fact, the lawsuit claims State Farm has issued Personal Injury Protection (PIP) benefits coverage to thousands of Florida consumers for which it has consistently paid out improperly reduced amount, specifically for claims pursuant to CPT codes 98940 and 98941, billing codes signifying chiropractic spinal treatment.