The National Association of Insurance Commissioners said it was “extremely disappointed” with auto insurance companies that have been using a code to falsely claim that their products are covered under Medicare and Social Security, The Associated Press reported.
A new study from the association, which represents insurance industry representatives, found that the companies were “using false claims to falsely generate higher premiums for the insureds and lower benefits to the general public,” according to a statement.
Auto insurance providers have also been using code-based billing methods to charge insurers higher rates and exclude seniors from coverage.
Insurers have also claimed that Medicare and Medicaid pay for insurance coverage.
“This is not just another scam,” said Larry Kudlack, a member of the NAAIC, who was not involved in the new study.
“It is a scam to defraud the Medicare and the Medicaid programs and the general population, as well as Medicare and taxpayers.
It is a fraud to get away with it.”