Introna v. Allstate Insurance

890 F. Supp. 161, 1995 U.S. Dist. LEXIS 7995, 1995 WL 348961
CourtDistrict Court, E.D. New York
DecidedApril 3, 1995
Docket1:93-cv-02870
StatusPublished
Cited by2 cases

This text of 890 F. Supp. 161 (Introna v. Allstate Insurance) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Introna v. Allstate Insurance, 890 F. Supp. 161, 1995 U.S. Dist. LEXIS 7995, 1995 WL 348961 (E.D.N.Y. 1995).

Opinion

MEMORAND UM-DE CISION AND ORDER

BARTELS, District Judge.

Plaintiffs bring this action pursuant to New York State’s Comprehensive Motor Vehicle Insurance Reparations Act, Insurance Law § 5101, et seq. (McKinney’s 1985 & Supp.1995), and the regulations promulgated thereunder (collectively the “No-Fault Law”). Plaintiff Mario Introna, D.C. (“Dr. Introna”), a licensed chiropractor, seeks to recover from defendant Allstate Insurance Company (“Allstate”) the cost of certain medical services he provided to patients covered by no-fault insurance policies issued by defendant. Plaintiffs also seek costs, interest, and attorney’s fees under Insurance Law § 5106(a).

I. Background and Contentions of Parties

Dr. Introna, as subrogee, submitted claims for reimbursement under a number of New York State no-fault insurance policies issued by Allstate. Allstate paid a portion of the claims but denied coverage on the remainder, asserting that Dr. Introna had charged fees in excess of those permitted under the No-Fault Law.

Plaintiffs instituted the present action in the Civil Court of the City of New York, County of Richmond, seeking to recover the outstanding balance. Defendant removed the action to this Court on June 28, 1993. Both parties then cross-moved for summary judgment. In their motion papers, plaintiffs did not dispute that Dr. Introna charged his no-fault patients fees in excess of the office visit fees permitted under the No-Fault Law, but argued that he was entitled to collect additional compensation for certain services performed during those visits. Dr. Introna also argued that he was justified in basing his fees on rates prevalent in his geographic area. Allstate disputed plaintiffs’ right to the additional charges, and argued that even if Dr. Introna were entitled to additional compensation, the No-Fault Law expressly requires him to base his fees on those charged for comparable medical procedures.

In Introna v. Allstate Ins. Co., 850 F.Supp. 161 (E.D.N.Y.1993), this Court awarded Dr. *163 Introna an unidentified sum as additional compensation for the performance of certain diagnostic procedures, but held that the balance of services at issue were not separately compensable. Plaintiffs’ request to determine additional fees on the basis of the prevailing rate was denied, and the Court ordered a trial on the issue of whether Dr. Introna charged his no-fault patients fees consistent with those charged for comparable procedures.

The Court held a bench trial of this matter on May 23 and 24, 1994. At trial, plaintiffs reiterated what they alleged to be a complete absence of medical procedures with which to compare those performed by Dr. Introna and the resultant need to base his additional fees on the prevailing rate. Plaintiffs then presented expert testimony, most of which was provided by Dr. Introna himself, concerning the amount of fees to which he is entitled. Defendant contended that the comparable procedure method was the only means statutorily available to plaintiffs, and presented a comprehensive methodology by which to determine procedures comparable to those performed by Dr. Introna.

According to plaintiffs, there remain five procedures for which the appropriate fee still must be determined. These include: Computerized Cervical Range of Motion tests; Autosereen 3-D (or Metreeom) studies; Surface Electromyography (“Surface EMG”); Neurometer Screen Testing; and Plethys-mography. Defendant generally agrees with plaintiffs’ assessment, but argues that because Computerized Cervical Range of Motion tests fall within the ambit of the Court’s prior ruling, the fees for this procedure are subsumed in already reimbursed office visit fees. Under Federal Rule of Civil Procedure 52, the Court reaches the following findings of fact and conclusions of law.

II. Findings of Fact

1. Plaintiff Dr. Introna, a licensed chiropractor authorized to practice within the State of New York, is a New York State resident who maintains his principal place of business in Staten Island, New York.

2. Plaintiff Chiro Med Health Services is an unincorporated business entity wholly owned by Dr. Introna which acts as Dr. Introna’s billing service and maintains its principal place of business in Staten Island, New York.

3. Defendant Allstate is a corporation incorporated under the laws of the State of Illinois which maintains its principal place of business in Illinois.

4. The amount in controversy exceeds $50,000.

5. Dr. Introna submitted to Allstate claims totalling over $82,000 seeking reimbursement for chiropractic services provided to approximately 29 different patients, all of whom were involved in automobile accidents and whose injuries were subject to no-fault insurance policies issued by defendant.

6. Dr. Introna provided all of the services at issue between April 1990 and February 1993.

7. Allstate fully reimbursed plaintiffs for all office visit fees, and paid plaintiffs a total of over $32,000 in satisfaction of their claims.

8. Allstate denied coverage on certain services Dr. Introna performed during office visits, including Computerized Cervical Range of Motion tests, Autoscreen 3-D studies, Surface EMG, Neurometer Screen Testing, and Plethysmography.

Statutory Framework

9. To contain the cost of providing medical services to patients treated under New York’s No-Fault Law, the state legislature set limits on the fees health care providers may charge patients who sustain injuries in the use or operation of a motor vehicle. See Insurance Law §§ 5102, 5108. The legislature controlled costs by incorporating into the no-fault scheme the fee schedules established by the Workers’ Compensation Board for industrial accidents. Insurance Law § 5108(a).

10. Published fee schedules now establish maximum permissible charges for chiropractic services used to treat no-fault patients. See 11 N.Y.C.R.R. § 68, Appendix 17-A, Part C; 11 N.Y.C.R.R. § 68, Appendix 17-C, Part L; 12 N.Y.C.R.R. § 348, Appendix C-5.

*164 11. At the time relevant to this action, the Workers’ Compensation Board fee schedules were divided into various sections, including Medicine, Physical Therapy, Anesthesia, Surgery, Radiology, and Pathology in the medical fee schedule, and Office and Home Visits and Radiology in the chiropractic fee schedule. See New York State Workers’ Compensation Board Schedule of Medical Fees, effective September 1, 1986, as amended through September 1, 1993 (collectively the “1986 Medical Fee Schedule”) (codified at 12 N.Y.C.R.R. § 329, Appendix C-3 and submitted in part as Defendant’s Trial Exhibit [“Def.Ex.”] B); New York State Workers’ Compensation Board Chiropractic Fee Schedule, effective September 1,1988, as amended through September 1, 1992 (collectively the “1988 Chiropractic Fee Schedule”) (originally codified at 11 N.Y.C.R.R. § 68, Appendix 17-A, Part C and submitted in part as Plaintiffs’ Trial Exhibit [“Pl.Ex.”] 2).

12.

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Bluebook (online)
890 F. Supp. 161, 1995 U.S. Dist. LEXIS 7995, 1995 WL 348961, Counsel Stack Legal Research, https://law.counselstack.com/opinion/introna-v-allstate-insurance-nyed-1995.