CPAN Members Outraged by Revelations of Auto Insurance Kickback Scheme, Offer Solutions to Stop Fraud

LANSING – The Coalition Protecting Auto No-Fault (CPAN) responded today to reports by the Detroit Free Press detailing a complex scheme between Southeast Michigan doctors and lawyers to illegally profit from Michigan’s no-fault system.

“The allegations in this report are very serious,” said CPAN President John Cornack. “If found to be true, this type of behavior damages the entire no-fault system and those who work so hard to protect it.”

The report is based on an affidavit from Dr. Ram Gunabalan, which details a coordinated series of kickbacks between attorneys and health care providers treating auto accident victims.

“CPAN is shocked and disgusted by the accusations made in the Free Press stories. These are exactly the types of fraudulent practices that our organization is hoping to root out of Michigan’s no-fault system through our reform proposals,” said Cornack. “Every time no-fault fraud takes place, it makes it that much harder for legitimate accident victims to get the care they need. We look forward to working with the legislature to tackle this issue as soon as they return to Lansing.”

CPAN has proposed a comprehensive package of 24 reforms to Michigan’s no-fault system that will reduce auto insurance fraud, improve consumer protections and reduce costs while still ensuring catastrophic accident victims have access to the care they need. Details of CPAN’s no-fault reforms can be found at FixNoFault.org.

 

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