A Clifton neurologist and medical practice have been sued by a car insurance company for allegedly paying kickbacks to chiropractors in return for referrals of accident patients.
Allstate New Jersey Insurance Co., filed suit this week against Dr. Gautam Sehgal and Clifton Neurology Associates, the company said in a statement.
Sehgal and the practice are accused of paying more than $450,000 through a middleman. The payments ostensibly were for marketing services.
Allstate said in the lawsuit that a chiropractor admitted receiving kickback payments for referring patients to Sehgal.
Allstate is asking reimbursement of the $1.4 million it paid for claims filed by Sehgal and the neurology practice, plus triple damages.
Sehgal has been licensed to practice medicine in New Jersey since 1976, with no disciplinary actions reported, according to the state Board of Medical Examiners. The phone number listed for the neurology practice, on Clifton Avenue, was disconnected.
Kickbacks for medical referrals drive premiums higher for every automobile-insurance policy in New Jersey, Allstate's president, Rich Crist, said in a statement.
Allstate provides coverage to more than 450,000 households in the state.
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