A coalition of heavyweight insurers has launched a legal salvo against a Michigan medical network, alleging a sweeping scheme to bilk them through fraudulent no-fault insurance claims.
Liberty Insurance Corporation and its affiliates - Liberty Mutual Fire Insurance Company, Liberty Mutual Personal Insurance Company, LM General Insurance Company, LM Insurance Corporation, LM Property and Casualty Insurance Company, Safeco Insurance Company of America, Safeco Insurance Company of Illinois, The Liberty Surplus Insurance Corporation, State Auto Insurance Company of Ohio, State Auto National Insurance Company, and State Auto Property and Casualty Insurance Company - filed suit in the United States District Court for the Eastern District of Michigan on August 12, 2025.
The complaint targets Anesthesia Services Affiliates, P.L.L.C., Central Home Health Care, Inc., Central Home Health Care Services, Inc., Michigan Ambulatory Surgical Center, L.L.C. (doing business as Specialty Surgical Center), Spine Specialists of Michigan, P.C., and Louis Radden, D.O.
According to the complaint, the insurers allege that the defendants engaged in a coordinated and concerted effort to abuse the Michigan No-Fault Act, Mich. Comp. Laws § 500.3101, et seq., by submitting false and fraudulent medical records, bills, and invoices through the U.S. Mail. The complaint claims these submissions sought payment under the No-Fault Act for treatment and services that were not actually rendered, were medically unnecessary, were fraudulently billed, and were billed at excessive rates.
The complaint describes the defendants as acting individually or together to conspire to defraud the plaintiffs by perpetuating an insurance fraud scheme in violation of Michigan law. The document details that ASA is a professional limited liability corporation incorporated under the laws of the State of Michigan, with its principal place of business in Oak Park, Michigan, and is owned and controlled by Dr. Radden.
The legal filing asserts that the alleged fraud undermines the integrity of Michigan’s no-fault insurance system. The case is anchored in the Michigan No-Fault Act (Mich. Comp. Laws § 500.3101 et seq.), which governs payment of benefits for medical services related to auto accidents.
No specific insurance policy clauses or dollar amounts are cited in the available portion of the complaint. The document focuses on the alleged scheme and its impact on the insurance industry.
At this stage, all statements are allegations made by the insurers in their complaint. The defendants have not yet responded, and the court has not made any findings of fact or law. The case remains pending in federal court.
For insurance professionals, the case is a reminder of the persistent threat of organized fraud and the importance of robust claims oversight. As the litigation unfolds, industry stakeholders will be watching for developments that could shape future fraud prevention and claims management practices in Michigan and beyond.
