Updated May 27, 2026
New York Governor’s Auto Insurance Reform Proposals Face Legislative Barriers
Governor Kathy Hochul has proposed several significant changes to New York’s auto insurance laws aimed at addressing fraud and controlling costs. Her key measures include cracking down on multi-car staged accidents and criminal enterprises, restricting drivers’ ability to recover economic damages only when they are not at fault, and narrowing the definition of "serious injury" to those unable to perform customary activities for 90 days following an accident. These efforts are part of a broader attempt to reduce one of the nation’s highest auto insurance premium costs.
These proposals have met resistance from stakeholders such as the New York State Trial Lawyers Association. Andrew Finkelstein, its president, voiced opposition, highlighting tensions amid the state's costly insurance environment. The debate over these reforms reflects divisions between efforts to curb insurance fraud and concerns about limiting legal recourse for accident victims.Spectrum News
Political Lobbying and Misinformation Surround New York Car Insurance Overhaul
The battle over New York’s car insurance reform is marked by a political conflict between two influential lobbies: the New York State Trial Lawyers Association and Uber-backed groups such as Citizens for Affordable Rates (CAR). The trial lawyers organized a letter signed by about a dozen clergy members opposing Governor Kathy Hochul’s proposals. In response, CAR circulated a competing letter supporting the governor’s plan, signed by more than 50 clergy. Millions of dollars have been spent on advocacy for both sides during this year’s budget discussions.
Misinformation has complicated the lobbying battle. Three clergy members listed on the anti-reform letter said they had not consented, and one who appeared on the pro-reform letter denied any contact with CAR; that name was removed before wide circulation. Another letter opposing the reforms included names of supporters unaware of their inclusion. After inquiries, the governor’s staff contacted those signatories, and that letter was never published. These incidents illustrate the contentious advocacy efforts in New York’s car insurance debate.City & State NY
Major Southern California Healthcare and Hospice Fraud Crackdown Nets Multiple Arrests
The U.S. Department of Justice announced a health care fraud operation targeting doctors, nurses, and hospice providers in Southern California. The investigation involved fraudulent Medicare claims where beneficiaries who were not terminally ill were paid to pose as hospice patients, resulting in hundreds of millions of dollars in false Medicare payments. Multiple law enforcement agencies, including the FBI and Centers for Medicare and Medicaid Services, executed search and arrest warrants across Los Angeles County, leading to charges against more than a dozen individuals and the arrest of eight people.ABC7 Chicago
Among those arrested were psychologist Gladwin Gill and his wife, Amelou Gill, a registered nurse, who operated a fraudulent hospice out of Glendale. Prosecutors said their hospice submitted more than $5.2 million in fraudulent Medicare claims, with over $4 million paid out. CMS leadership announced plans to review every hospice provider in California within the year.ABC7 Chicago
Criminal Charges Filed Against Restaurateur and Associates in New York Auto Insurance Fraud Scheme
Zhan Petrosyants, a restaurateur and friend of former New York City Mayor Eric Adams, was criminally indicted on insurance fraud and money laundering charges in the Southern District of New York. Authorities allege Petrosyants submitted fraudulent claims for medical services that were not provided or unnecessary, funneling millions from insurance programs for car crash victims. Vladislav Stoyanovsky and Dmitriy Khavko, businessmen connected to Adams’ former chief of staff and previously sued by GEICO for similar schemes, were also charged.
The fraudulent claims were submitted through shell companies Sunstone Service and Blue Tech Supplies, named in GEICO’s 2024 lawsuit alleging hundreds of falsified no-fault insurance claims. Money was transferred to a jewelry business in Manhattan’s Diamond District and other accounts controlled by the defendants. A New York law firm was also involved but not named in court filings. All three pleaded not guilty, and proceedings are ongoing.amNewYork
Updates on New York State Auto Insurance Rates and Local Developments
WXXI News’ program “Connections with Evan Dawson” covered current updates on auto insurance rates in New York State. The episode also included local news about the Red Wings' stadium area and updates from Monroe County Clerk Jamie Romeo, combining statewide insurance information with relevant community developments.WXXI News