ALLSTATE FIRE AND CASUALTY INSURANCE COMPANY
v.
JEFFREY L. KATZELL, M.D., P.A. A/A/O SYLVIANE LOUVRIER
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Allstate Fire and Casualty Insurance Company appealed a summary judgment favoring a medical provider in a personal injury protection benefits dispute, arguing it properly reimbursed imaging services at the 2007 non-facility limiting charge rather than the participating price. The Third District Court of Appeal reversed based on Priority Medical Centers, LLC v. Allstate Insurance Co., which held that the current PIP statute requires reimbursement at the higher 2007 non-facility limiting charge, not the lower participating price.
Under the current PIP statute as amended in 2012, insurers must reimburse medical imaging services at the higher 2007 non-facility limiting charge rather than the lower 2007 non-facility participating price when calculating the applicable Medicare fee schedule.
[1] Under the PIP statute as amended in 2012, the applicable Medicare fee schedule for reimbursement of imaging services is the highest allowable amount, which is the 2007 no…
[2] The legislative removal of the phrase 'participating physician' from section 627.736(5)(a)2. …
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“When the legislature amends a statute by omitting words, the general rule of construction is to presume that the legislature intended the statute to have a different meaning from that accorded it before the amendment.”
Establishes the interpretive principle that the removal of 'participating physician' language signals legislative intent to change the statute's meaning.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceSylviane Louvrier sought medical treatment from Provider for car accident injuries and obtained an assignment of PIP benefits. Allstate paid Provider …
The full statement of facts, procedural history, and disposition for this case are member content.
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DAMOORGIAN, J.
In this action for unpaid personal injury protection (“PIP”) benefits, Allstate Fire and Casualty Insurance Company (“Allstate”) appeals the final summary judgment entered in favor of Jeffrey L. Katzell, M.D., P.A. a/a/o Sylviane Louvrier (“Provider”). The court entered judgment in Provider’s favor on the basis that Allstate made improper overpayments for X-ray and MRI procedures by reimbursing at the higher 2007 non-facility limiting charge rather than at the lower 2007 non-facility participating price. Based on the recent decision in Priority Medical Centers, LLC v. Allstate Insurance Co., 46 Fla. L. Weekly D978 (Fla. 3d DCA Apr. 28, 2021), wherein the Third District held that the proper reimbursement rate for these types of services is the higher 2007 non-facility limiting charge and not the lower 2007 non-facility participating price, Provider has filed a confession of error in this case. We accept the confession of error and reverse. There is no dispute as to the underlying facts in this case. Sylviane Louvrier, the insured, sought medical treatment from Provider for injuries he sustained in a car accident. Provider obtained an assignment of PIP benefits under the insured’s policy with Allstate and submitted bills for reimbursement to Allstate. Out of the $10,000 available in PIP benefits, Allstate paid Provider the sum of $281.33 and denied the remainder of Provider’s bills because benefits were exhausted.
Provider thereafter sued Allstate, arguing that Allstate “improperly and/or gratuitously” exhausted benefits by issuing payments to Independent Imaging LLC, a different medical provider that also treated the insured. Specifically, Provider argued that Allstate improperly reimbursed Independent Imaging LLC at the higher 2007 non-facility limiting charge rather than at the lower 2007 non-facility participating price for CPT codes 72110 (lumbar X-ray), 72050 (cervical X-ray), 72141 (cervical MRI), and 72148 (lumbar MRI). Had Allstate paid Independent Imaging LLC pursuant to the lower 2007 non-facility participating price, then additional benefits would have remained to satisfy Provider’s bills. The court ultimately agreed with Provider, concluding that Allstate’s “payment made over the amount of the Participating Physicians fee schedule of Medicare Part B was gratuitous and should not count against the $10,000 PIP limit.” The court then entered final summary judgment in favor of Provider in the amount of $124.17. This appeal follows.
In Priority Medical Centers, LLC, the Third District recently clarified that, under the current PIP statute, the proper reimbursement rate for these types of services is the higher 2007 non-facility limiting charge, not the lower 2007 non-facility participating price. 46 Fla. L. Weekly at D979. In so holding, the court explained:
Before 2012, the PIP statute expressly referenced the Medicare Part B for 2007 “participating physician” fee schedule. In 2012, the Florida Legislature amended the PIP statute to remove the phrase “participating physician” from section 627.736(5)(a)2. and replaced it with “applicable schedule.” The relevant statute now reads:
2. For purposes of subparagraph 1., the
applicable fee schedule or payment limitation under Medicare is the fee schedule or payment limitation in effect on March 1 of the service year in which the services, supplies, or care is rendered and for the area in which such services, supplies, or care is rendered, and the applicable
Section 627.736(5)(a)2., Florida Statutes (2016) (emphasis added). When the legislature amends a statute by omitting words, the general rule of construction is to presume that the legislature intended the statute to have a different meaning from that accorded it before the amendment. Aetna Cas. & Sur. Co. v. Buck, 594 So. 2d 280, 283 (Fla. 1992) (citing Capella v. City of Gainesville, 377 So. 2d 658 (Fla. 1979)).
With that in mind, there are two available Medicare Part B Fee Schedule reimbursement possibilities for the MRI procedure at issue: the non-facility participating price or the non-facility limiting charge. The record on appeal indicates that the Centers for Medicare & Medicaid Services search tool provides the following amounts:
• 200% of the non-facility participating price for CPT code 72148 in 2016 in Broward County is $464.18. • 200% of the non-facility participating price for CPT 72148 in 2007 in Broward County is $1,140.92. • 200% of the non-facility limiting charge for CPT 72148 in 2007 in Broward County is $1,246.46.
(Emphasis added).
Allstate’s policy elected to use the schedule of maximum charges or fee schedules for reimbursement of PIP claims under section 627.736(5)(a)2., referenced above. The Florida PIP statute instructs insurers that they may limit reimbursement in accord with the terms of the statute, but that reimbursement may not be less than what is allowable under the 2007 Medicare fee schedule, i.e., the “applicable schedule.” Thus, when an insurer calculates the
On June 14, 2016, Allstate paid $1,246.46 to Priority Medical, which is 200% of the non-facility limiting charge in 2007 for Broward County. Priority Medical argues that for the MRI procedure at issue, 200 percent of the allowable amount under the “participating physician” fee schedule of Medicare Part B is $464.18 for 2016 and $1,140.92 for 2007. Priority Medical argues that the plain language of the statute required Allstate to compare the $464.18 with the $1,140.92 and to pay the higher of the two. Priority Medical relies on Millennium Diagnostic Imaging Center., Inc. v. Security National Insurance Co., 882 So. 2d 1027, 1029–30 (Fla. 3d DCA 2004), and Advanced Diagnostics Testing v. Allstate Insurance Co., 888 So. 2d 663–64 (Fla. 3d DCA 2004) in which this Court held that the amount of PIP benefits payable to MRI providers is based on the participating physicians fee schedule and not on the limiting charge. We note that these cases relied on the pre-2012 amendment language “participating physician,” which the Legislature removed and replaced with “applicable schedule.” These cases are not applicable to the current PIP/Medicare statutory reimbursement language at issue here. Under the current version of the PIP statute, and giving effect to the 2012 legislative amendment, the highest reimbursement allowable fee schedule of Medicare Part B is the non-facility limiting charge for 2007, which was the amount on which Allstate was required to base its reimbursement to Priority Medical for the MRI procedure at issue.
Id. at D979–80.
We adopt the reasoning in Priority Medical Centers, LLC and hold that Allstate properly reimbursed Independent Imaging LLC at the higher 2007 non-facility limiting charge for CPT codes 72110, 72050, 72141, and 72148. As the Provider did not contest any other payments made by
Reversed and remanded.
GROSS and MAY, JJ., concur.
* * *
Not final until disposition of timely filed motion for rehearing.
5
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Citator
Cited By
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Allstate Fire & Cas. Ins. Co. v. Jeffrey L. Katzell, M.D., P.A., 46 Fla. L. Weekly D978 (Fla. 4th DCA 2021)
Authorities Cited
- AETNA Cas. & Sur. Co. v. Buck, 594 So. 2d 280 (Fla. 1992)
- Capella v. City OF Gainesville, 377 So. 2d 658 (Fla. 1979)
- Northwoods Sports Med. & Physical Rehab., Inc. v. State Farm Mut. Auto. Ins. Co. & USAA Cas. Ins. Co., 137 So. 3d 1049 (Fla. 4th DCA 2014)
- Millennium Diagnostic Imaging Ctr., Inc. v. Sec. Nat'l Ins. Co., 882 So. 2d 1027 (Fla. 3d DCA 2004)
- Allstate Fire & Cas. Ins. Co. v. Jeffrey L. Katzell, M.D., P.A., 46 Fla. L. Weekly D978 (Fla. 4th DCA 2021)