A group of major insurance companies has filed a lawsuit against a Michigan medical network, claiming it has been involved in a large-scale scheme to defraud them through false no-fault insurance claims. The lawsuit, initiated by Liberty Insurance Corporation and its affiliates, was submitted to the United States District Court for the Eastern District of Michigan on August 12, 2025.
The defendants named in the lawsuit include several medical entities, such as Anesthesia Services Affiliates, P.L.L.C., Central Home Health Care, Inc., and Michigan Ambulatory Surgical Center, among others. The insurers allege that these companies engaged in a coordinated effort to exploit the Michigan No-Fault Act by submitting fraudulent medical records and bills. They claim these submissions sought payments for services that were either never provided, medically unnecessary, or billed at inflated rates.
The complaint outlines that the defendants worked together to deceive the insurers, violating Michigan law in the process. Anesthesia Services Affiliates, which is owned by Dr. Louis Radden and based in Oak Park, Michigan, is highlighted as a key player in this alleged conspiracy.
The lawsuit raises concerns about the integrity of Michigan’s no-fault insurance system, which is designed to provide medical benefits for auto accident-related injuries. The complaint does not specify any particular insurance policy details or monetary amounts, focusing instead on the alleged fraudulent activities and their implications for the insurance industry.
At this point, the claims made in the lawsuit are allegations, and the defendants have yet to respond. The court has not made any rulings regarding the case, which is still ongoing.
For those in the insurance field, this case serves as a reminder of the ongoing threat posed by organized fraud. As the situation develops, it will be important for industry professionals to pay attention to how this case might influence future fraud prevention efforts and claims management practices in Michigan and elsewhere.