Harrison v. Blue Cross Blue Shield

CourtDistrict Court, D. New Hampshire
DecidedAugust 17, 1999
DocketCV-99-346-JD
StatusPublished

This text of Harrison v. Blue Cross Blue Shield (Harrison v. Blue Cross Blue Shield) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harrison v. Blue Cross Blue Shield, (D.N.H. 1999).

Opinion

Harrison v. Blue Cross Blue Shield CV-99-346-JD 08/17/99 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

Paula Harrison

v. Civil No. 99-346-JD

Blue Cross Blue Shield New Hampshire

O R D E R

Paula Harrison brings an action under the Employee

Retirement Income Security Act, 29 U.S.C.A. § 1001, et seq.,

seeking coverage from Blue Cross Blue Shield New Hampshire

("BCBSNH") for knee surgery to repair damaged cartilage by

autologous chondrocyte transplantation (ACT). BCBSNH denied

coverage under the experimental procedures endorsement to

Harrison's policy. The court considers Harrison's request for a

mandatory preliminary injunction to require BCBSNH to cover the

ACT procedure for her.

Background

The plaintiff is a thirty-six year old woman with a chronic

knee condition due to chondral lesions on the femoral chonryle,

causing the bones in her knee to come into direct contact without

a cartilage buffer. The bone contact causes substantial pain

during any weight-bearing activity. As a result, the plaintiff had to leave work for several months and has returned on only a

part-time basis. She is a single mother of two daughters. She

has been diagnosed with depression because of the stress and pain

caused by her knee condition.

The plaintiff's treating orthopedic surgeon. Dr. James

Karlson, recommends that the plaintiff undergo the ACT procedure.

The plaintiff has previously had other procedures that have not

had long-lasting results. Dr. Karlson reports that the

plaintiff's progress, following surgical reconstruction of her

anterior cruciate ligament in September of 1997, has been slowed

by her knee pain. During the ACL reconstruction. Dr. Karlson

took a biopsy of her healthy cartilage, which has been processed

and stored by Genzyme Tissue Repair for an ACT procedure. In Dr.

Karlson's opinion, without an ACT procedure the plaintiff will

continue to suffer pain while her knee degenerates until such

time as a knee replacement procedure will be reguired. Because

knee replacements last only ten to fifteen years, the plaintiff

would be expected to need several knee replacements during her

lifetime. A second opinion, by Dr. Arnold D. Scheller, confirmed

the recommendation of the ACT procedure for the plaintiff.

When the plaintiff agreed to the ACT procedure. Dr. Karlson

contacted BCBSNH for precertification of the procedure. His

reguest was denied based on the experimental procedures

2 endorsement in the plaintiff's BCBSNH policy. The endorsement

provides, "BCBSNH will not pay for services or supplies which

BCBSNH determines in its sole discretion, are

Experimental/Investigational services." Dr. Karlson's appeal

was denied on August 20, 1998. The plaintiff, assisted by

Genzyme Tissue Repair, then appealed the decision to the Claims

Committee.1 On December 3, 1998, the Claims Committee upheld the

decision to deny coverage. In May of 1999, the plaintiff,

through counsel, sent additional medical literature to BCBSNH

pertaining to the ACT procedure. BCBSNH notified the plaintiff

in June that BCBSNH found no reason to change the decision.

The plaintiff filed her complaint on July 30, 1999, seeking

coverage of the costs of the ACT procedure, asking that a fine be

imposed on BCBSNH for failing to provide reguested information,

and reguesting a preliminary injunction to reguire BCBSNH to

cover the cost of the ACT procedure for her. A hearing was held

on August 4, 1999, on the plaintiff's reguest for a preliminary

injunction. BCBSNH subseguently filed a memorandum in opposition

to the plaintiff's reguested relief.

1Genzyme Tissue Repair is the company that developed and markets an autologous chondrocite product called Carticel, and related supplies, for use in the ACT procedure. Although it is not clear from the record, the court assumes that Genzyme Tissue Repair and the Genzyme company are the same or related entities.

3 Discussion

To succeed on a motion for a preliminary injunction, the

plaintiff must establish that "(1)[she] is substantially likely

to succeed on the merits of [her] claim; (2) absent the

injunction there is a significant risk of irreparable harm; (3)

the balance of hardships weighs in [her] favor; and (4) the

injunction will not harm the public interest." I.P. Lund Trading

Aps v. Kohler Co., 163 F.3d 27, 33 (1st Cir. 1998) (guotation

omitted). In the context of a dispute over medical insurance

benefits, "[t]he heart of the matter is whether the harm caused

plaintiff without the injunction, in light of the plaintiff's

likelihood of eventual success on the merits, outweighs the harm

the injunction will cause defendants." United Steelworkers of

America v. Textron, Inc., 836 F.2d 6, 7 (1st Cir. 1987)

(guotation omitted).

A. Likelihood of Success on the Merits

The applicable BCBSNH policy confers discretionary authority

to the BCBSNH medical director to construe the terms of the

policy. For that reason, the decision to deny coverage would

ordinarily be entitled to discretion and would be reversed only

if it were found to be arbitrary or capricious. See Terry v.

Baver Corp., 145 F.3d 28, 37 (1st Cir. 1998). The plaintiff

4 argues that because BCBSNH both makes coverage decisions and pays

for coverage, the decision to deny coverage was decided under a

conflict of interest.

The fact that BCBSNH would have to pay benefits out of its

own pocket does not establish that the denial was made under a

conflict of interest. See Doyle v. Paul Revere Life Ins. Co.,

144 F.3d 181, 184 (1st Cir. 1998). A general interest in

conserving resources is insufficient to support a finding of

conflict of interest. See Doe v. Travelers Ins., 167 F.3d 53, 57

(1st Cir. 1999). Instead, the burden is on the plaintiff to show

that the challenged decision was improperly motivated. Doyle,

144 F.3d at 184. Absent proof of improper motivation, the

decision is reviewed for reasonableness. Doe, 167 F.3d at 57.

As the plaintiff here makes no showing of an improper

motivation, the decision is reviewed under the reasonableness

standard. Therefore, BCBSNH's decision will be reviewed in light

of the record before the court to determine "whether [BCBSNH] had

substantial evidentiary grounds for a reasonable decision in its

favor." Doyle, 144 F.3d at 184.

The plaintiff argues that BCBSNH's decision in her case is

unreasonable because BCBSNH approved coverage for an ACT

procedure for another patient, because the Food and Drug

Administration has approved the cartilage product used in the ACT

5 procedure, because ACT coverage is mandated for federal employees

under Blue Cross policies, and because Blue Cross plans in other

states cover the ACT procedure.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
Harrison v. Blue Cross Blue Shield, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrison-v-blue-cross-blue-shield-nhd-1999.