Insurance Fraud Ring Busted By Colorado’s Attorney General
DENVER (CBS4)– Colorado’s Attorney General has busted a major insurance fraud ring that is believed to have scammed insurance companies out of nearly $175,000.
Attorney General John Suthers said the ring submitted inflated or fake medical bills to scam six insurance companies out of a lot of money.
“A lot of people think insurance companies have a lot of money, they can afford to pay, what’s so bad about inflating a claim? But you get over the notion that insurance companies pay, you actually pay because your premiums go up,” said Suthers.
The National Insurance Crime Bureau found questionable claims in Colorado rose 19 percent between 2011 and 2012.
The FBI says the average family pays $400-$700 in higher premiums every year as the result of fraud.
State lawmakers passed a bill this previous legislative session which makes insurance fraud a felony in Colorado.