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December 12, 2019

Global Liberty Ins. Co. of N.Y. v Acupuncture Now, P.C. (2019 NY Slip Op 08942)

https://www.beynensonlaw.com/case-law/global-liberty-ins-co-of-n-y-v-acupuncture-now-p-c-2019-ny-slip-op08942/

Court
Appellate Division, First Department
Decided
December 12, 2019
Citation
2019 NY Slip Op 08942 · 178 AD3d 512
Posture
Summary judgment
Outcome
Provider prevailed
Later treatment
Distinguished in 1, contrasted (cf., but see) in 1 and followed in 1 later decisions (see Cited by)
Issues
Fee schedule Discovery and procedure
Legal questions
Proving a fee schedule defense (see the maps)
Cite as
Global Liberty Ins. Co. of N.Y. v Acupuncture Now, P.C., 178 AD3d 512 (1st Dept 2019)

Posture, outcome, issues and treatment by other decisions are Beynenson Law’s classification. Treatment labels are assigned by a language model reading the citing decision; negative and appeal-history labels are checked by a second reader.

Summary

Editorial summary by Beynenson Law, not part of the court’s decision.

The insurers failed to establish that licensed acupuncturists could be reimbursed only under the chiropractic fee schedule. The Appellate Division, First Department, affirmed the order, insofar as appealed from, denying summary judgment on the insurers' requested declaration and injunction against physician-rate claims. Insurance Law § 5108 (a) limits reimbursement to permissible workers' compensation charges. Without an acupuncturist schedule, 11 NYCRR 68.5 (b) permits prevailing geographic fees subject to review against similar procedures. The agency opinion and cases permitting chiropractic rates did not foreclose physician rates in every case. The insurers failed to establish improper billing, and providers raised a factual issue through agency materials and an unrebutted affidavit describing physician-rate reimbursement. The overbilling motion was also premature before discovery under CPLR 3212 (f).

Reported in New York Official Reports at Global Liberty Ins. Co. of N.Y. v Acupuncture Now, P.C. (2019 NY Slip Op 08942)

Global Liberty Ins. Co. of N.Y. v Acupuncture Now, P.C.
2019 NY Slip Op 08942 [178 AD3d 512]
December 12, 2019
Appellate Division, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, January 29, 2020

[*1]

 Global Liberty Insurance Co. of New York, Appellant,
v
Acupuncture Now, P.C., et al., Respondents.

The Law Office of Jason Tenenbaum, P.C., Garden City (Talia Beard of counsel), for appellant.

The Rybak Firm, PLLC, Brooklyn (Karina Barska of counsel), for respondents.

Order, Supreme Court, New York County (Tanya R. Kennedy, J.), entered on or about December 5, 2018, which, to the extent appealed from, denied plaintiffs’ motion for summary judgment on their claims seeking a declaration that licensed acupuncturists are entitled to payment of no-fault insurance benefits only as set forth in the workers’ compensation fee schedule for chiropractors, and an order enjoining defendants from claiming payment in litigation or arbitration under the fee schedule for physicians, unanimously affirmed, without costs.

In this action, plaintiff no-fault insurers seek to resolve, as a matter of law, the question of the fee schedule applicable to reimbursement of licensed acupuncturists who provide services to eligible individuals injured in motor vehicle accidents. Under the Insurance Law, no-fault coverage for necessary medical expenses “shall not exceed the charges permissible under the schedules prepared and established by the chairman of the workers’ compensation board for industrial accidents” except under “unique circumstances” (Insurance Law § 5108 [a]). Under applicable regulations, where a service is reimbursable but the superintendent has not adopted or established a fee schedule applicable to the provider, then the permissible charge for such service shall be the prevailing fee in the geographic location of the provider subject to review by the insurer for consistency with the charges permissible for similar procedures under schedules already adopted or established (11 NYCRR 68.5 [b]; see Forrest Chen Acupuncture Servs., P.C. v GEICO Ins. Co., 54 AD3d 996, 997 [2d Dept 2008], affg 15 Misc 3d 137[A], 2007 NY Slip Op 50874[U] [App Term, 2d Dept, 2d & 11th Jud Dists 2007]). The superintendent has not adopted a fee schedule applicable to licensed acupuncturists, requiring consideration of “charges permissible for similar procedures under schedules already adopted or established” (11 NYCRR 68.5 [b]).[FN*]

Plaintiffs did not proffer admissible evidence sufficient to make a prima facie showing of entitlement to judgment on the issue as a matter of law (see Winegrad v New York Univ. Med. Ctr., 64 NY2d 851, 853 [1985]). Plaintiffs rely on a 2004 informal opinion letter of the former Insurance Department, but that letter did not resolve the issue. It allows insurers to pay “the rates established for doctors and chiropractors,” instead of a higher “prevailing fee in the geographic location of the provider,” so long as there is a review “for consistency with [the] charges permissible for similar procedures” under either fee schedule (Ops Gen Counsel NY Ins Dept No. 04-10-03; see 11 NYCRR 68.5 [b]). The opinion letter “did not give any guidance as to which particular fee schedule should be applied to a licensed acupuncturist in any particular instance, although the Department was aware” that “the fee schedules for acupuncture services performed by chiropractors are lower than the fee schedules for such services performed by physicians” (Great Wall Acupuncture v GEICO Gen. Ins. Co., 16 Misc 3d 23, 28 [App Term, 2d Dept, 2d & 11th Jud Dists 2007]; see Andryeyeva v New York Health Care, Inc., 33 NY3d 152, 174 [2019] [requiring judicial deference to an “agency’s rational interpretation of its own regulations”]). While courts have held that “an insurer may use the workers’ compensation fee schedule for acupuncture services performed by chiropractors to determine the amount which a licensed acupuncturist is entitled to receive” (Great Wall Acupuncture, P.C. v Geico Ins. Co., 26 Misc 3d 23, 24 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2009] [emphasis added]; see also Akita Med. Acupuncture, P.C. v Clarendon Ins. Co., 41 Misc 3d 134[A], 2013 NY Slip Op 51860[U] [App Term, 1st Dept 2013]), such holdings do not foreclose the use of the physician fee schedule in all cases (see e.g. Okslen Acupuncture P.C. v Travco Ins. Co., 44 Misc 3d 135[A], 2014 NY Slip Op 51209[U], *1 [App Term, 1st Dept 2014]; Raz Acupuncture, P.C. v AIG Indem. Ins. Co., 28 Misc 3d 127[A], 2010 NY Slip Op 51177[U], *2 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2010]).

Further, plaintiffs did not “proffer sufficient evidence to establish as a matter of law that the claims were improperly billed or were in excess of the amount permitted by the fee schedule” (Easy Care Acupuncture, P.C. v A. Cent. Ins. Co., 48 Misc 3d 129[A], 2015 NY Slip Op 50973[U], *1 [App Term, 1st Dept 2015]).

In any event, defendants raised an issue of fact as to whether the physician fee schedule should apply. They rely on the former Insurance Department’s regulatory impact statement accompanying its proposed 2010 rule amendment, by which it sought to clarify “inconsistent” court rulings, that “acupuncture treatments are the primary service performed and billed by licensed acupuncturists” and “such treatments merit reimbursement at the same rate that medical doctors receive for comparable services” (NY Reg, July 21, 2010 at 12-13). They also proffered, among other things, an affidavit from a licensed acupuncturist who averred that he was consistently reimbursed by workers’ compensation insurers at the physician rates, for over 15 years, which plaintiffs did not rebut.

Further, Supreme Court did not err by finding the motion for summary judgment on the issue of overbilling to be premature prior to discovery (see American Tr. Ins. Co. v Jaga Med. Servs., P.C., 128 AD3d 441, 441 [1st Dept 2015]; see also CPLR 3212 [f]). Concur—Richter, J.P., Manzanet-Daniels, Webber, Gesmer, JJ.

Footnotes

Footnote *:We join the recommendation of the Appellate Term, Second Department, that the Superintendent of Insurance consider adopting a fee schedule including licensed acupuncturists to resolve the issue.

Legal questions

A question of no-fault law this decision rules on, from our Legal Questions pages. Bars count the decisions on the question by year and court, coloured by category; circles are this decision and the decisions on the question it cites or that cite it. Point at a bar or circle for details. The categories and summaries are Beynenson Law’s classification, made by a language model and checked by a second reading.

Proving a fee schedule defense

Open the full map

Did the insurer prove that the amount billed exceeded the applicable workers’ compensation fee schedule?

This decision: Insurer's proof did not establish the excess as a matter of law; question left for trial

Held the insurers did not show as a matter of law that licensed acupuncturists may be paid only at the chiropractor rate or that the claims exceeded the schedule, and the providers raised an issue whether the physician schedule applies.

  • Court of AppealsCt App 1
  • Appellate DivisionApp Div 2
  • Appellate TermApp Term 30
  • Trial courtsTrial 12
2016, Court of Appeals: 1 decision (1 Excess shown)2019, Appellate Division: 2 decisions (2 Not established; open)2018, Appellate Term: 2 decisions (2 Not established; open)2017, Appellate Term: 3 decisions (2 Not established; open, 1 Split by charge)2016, Appellate Term: 5 decisions (2 Excess shown, 3 Split by charge)2015, Appellate Term: 6 decisions (4 Excess shown, 2 Split by charge)2014, Appellate Term: 5 decisions (3 Excess shown, 1 Not established; open, 1 Split by charge)2013, Appellate Term: 3 decisions (3 Excess shown)2012, Appellate Term: 2 decisions (1 Excess shown, 1 Not established; open)2011, Appellate Term: 1 decision (1 Excess shown)2008, Appellate Term: 2 decisions (2 Defense rejected)2006, Appellate Term: 1 decision (1 Defense rejected)2020, Trial courts: 3 decisions (2 Not established; open, 1 Defense rejected)2018, Trial courts: 3 decisions (2 Excess shown, 1 Defense rejected)2017, Trial courts: 1 decision (1 Defense rejected)2015, Trial courts: 1 decision (1 Excess shown)2014, Trial courts: 2 decisions (2 Excess shown)2013, Trial courts: 1 decision (1 Excess shown)2022, Trial courts: 1 decision (1 Excess shown)This decision
201020152020
Excess shownNot established; openDefense rejectedSplit by chargeThis decisionCites it or cited by itCited or followedDistinguished or limited

Of the 45 decisions on this question in the First Department courts and the Court of Appeals, 10 (this one included) are in the same category. 7 decisions in other departments that cite or are cited by this one are on the full map.

Cited in this decision

A label shows how this decision treated the case it cites.

  • Forrest Chen Acupuncture Servs., P.C. v GEICO Ins. Co. (2008 NY Slip Op 07211)The insurer established that acupuncture reimbursement was properly limited to charges for similar procedures under existing fee schedules.
  • Forrest Chen Acupuncture Servs., P.C. v GEICO Ins. Co. (2007 NY Slip Op 50874(U))The insurer's use of physical-therapy rates for acupuncture claims was upheld because the provider did not dispute similarity of the procedures.
  • Great Wall Acupuncture v GEICO Gen. Ins. Co. (2007 NY Slip Op 27164) FollowedThe insurer properly reimbursed the licensed acupuncturist at chiropractor rates because similar services and licensing requirements supported them.
  • Great Wall Acupuncture, P.C. v Geico Ins. Co. (2009 NY Slip Op 29467) LimitedAn insurer may use the chiropractic acupuncture fee schedule to reimburse acupuncture services performed by a licensed acupuncturist.
  • Akita Med. Acupuncture, P.C. v Clarendon Ins. Co. (2013 NY Slip Op 51860(U))The insurer properly reimbursed a licensed acupuncturist at the workers' compensation fee-schedule rate for chiropractic acupuncture.
  • Okslen Acupuncture P.C. v Travco Ins. Co. (2014 NY Slip Op 51209(U))The provider failed to show that its acupuncture services fell outside the physicians' workers' compensation fee schedule.
  • Raz Acupuncture, P.C. v AIG Indem. Ins. Co. (2010 NY Slip Op 51177(U))An insurer may use the workers' compensation acupuncture fee schedule for chiropractors to reimburse a licensed acupuncturist.
  • American Tr. Ins. Co. v Jaga Med. Servs., P.C. (2015 NY Slip Op 03925) FollowedThe insurer's summary judgment motion based on the claimant's EUO nonappearance was denied because essential discovery remained outstanding.

Cited by

A label shows how the later decision treated this one.

  • Balance Art Acupuncture P.C. v MVAIC (2022 NY Slip Op 22061) DistinguishedMVAIC established proper payment at chiropractic acupuncture rates, and the provider failed to show that physician rates should apply.
  • Mind & Body Acupuncture, P.C. v State Farm Mut. Auto. Ins. Co. (2022 NY Slip Op 50603(U)) Contrasted (cf., but see)The insurer established full payment for the disputed acupuncture services under the workers' compensation fee schedule applicable to chiropractors.
  • NYC Sports Acupuncture PC v MVAIC (2020 NY Slip Op 50393(U)) FollowedMVAIC established a lack of medical necessity for further acupuncture treatment but failed to establish its fee schedule defense.
  • Nova Acupuncture, P.C. v Esurance (2022 NY Slip Op 50555(U))The insurer failed at trial to prove that it properly applied fee-schedule codes to calculate reimbursement for acupuncture services.

Similar decisions

  • Gentle Care Acupuncture, P.C. v Geico Ins. Co. (2010 NY Slip Op 52226(U))An insurer may use the chiropractic acupuncture fee schedule to reimburse acupuncture services performed by a licensed acupuncturist.
  • AVA Acupuncture, P.C. v GEICO Gen. Ins. Co. (2007 NY Slip Op 27371)An insurer may use the workers' compensation fee schedule for chiropractors to reimburse acupuncture performed by a licensed acupuncturist.
  • Amercure Acupuncture, P.C. v GEICO Ins. Co. (2010 NY Slip Op 50068(U))An insurer may use the chiropractic acupuncture fee schedule to reimburse services rendered by a licensed acupuncturist.
  • Apple Tree Acupuncture, P.C. v Progressive Northeastern Ins. Co. (2012 NY Slip Op 51710(U))An insurer may use the workers' compensation fee schedule for chiropractic acupuncture to reimburse a licensed acupuncturist.
  • Great Wall Acupuncture, P.C. v GEICO Gen. Ins. Co. (2005 NY Slip Op 51199(U))The provider failed to establish that a licensed acupuncturist's services warranted reimbursement above the chiropractor fee schedule rate.
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