Allied Benefit Systems accused of refusing to pay insurance claim

By Whitney Brakken | Apr 11, 2014

A third-party health insurance administrator is facing suit after allegedly agreeing to provide insurance coverage for a medical treatment and then refusing to pay for it.

Southwest Surgery Center LLC, doing business as Center for Minimally Invasive Surgery, filed a lawsuit April 2 in the Cook County Circuit Court against Allied Benefit Systems Inc., citing promissory estoppel.

The complaint states the surgery center provided healthcare services to a patient insured under a plan administered by Allied. The center claims that it called Allied on August 4, 2011 to ensure the treatment was covered under the patient's insurance plan before

After being told the treatment was covered, the center provided it, according to the suit that alleges Allied then refused to pay.

The plaintiff is seeking compensatory damages for the unpaid claim, plus interest. The center is being represented in the case by Douglas L. Prochnow, John A. Roberts, Colin O'Donovan and Erin Brechtelsbauer of Edwards Wildman Palmer LLP.

Cook County Circuit Court Case No. 2014L003735.

This is a report on a civil lawsuit filed in the Cook County Circuit Court. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.

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