Not according to John MacArthur, and several other Prominent Protestants. They believed Jesus was giving a true story, because parables
They note that different from parables, Jesus gives proper names in this story.
Would Jesus present a heresy in order to present some other truth? Then why would He give a story about Abraham being prayed to if only God hears and answers prayers?
Lining the tomb of Peter, are prayers, "Peter pray for us", that are dated to the time of the apostles. Lining the tombs of the martyrs in the ancient catacombs are the same to the saints in light. The early Church defended the devotion because Christ said those that die in Him aren't dead, and they can pray for us too, just like Abraham did in Christ's own example.
Who should we listen to, those who heard the apostles themselves and were taught by them, or Protestant reformers barely five hundred years old that disagree?