Jeffrey Farkas, M.D., LLC v. 1199SEIU National Benefit Fund

District Court, E.D. New York·Decided April 1, 2026·No. 1:25-cv-00057·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK --------------------------------------------------------------- JEFFREY FARKAS, M.D., LLC,

Plaintiff, MEMORANDUM & ORDER v. 25-CV-57 (MKB)

1199SEIU NATIONAL BENEFIT FUND,

Defendant. --------------------------------------------------------------- MARGO K. BRODIE, United States District Judge: I. Background ............................................................................................................................. 2 a. Overview of the NSA.......................................................................................................... 4 i. Process for payments and resolution of payment-related disputes between providers and insurers ............................................................................................................................. 6 ii. Agency implementation and oversight ......................................................................... 10 b. Plaintiff’s IDR process ...................................................................................................... 11 II. Discussion ............................................................................................................................. 12 a. Standards of review........................................................................................................... 12 i. 12(b)(1) ......................................................................................................................... 12 ii. Article III standing ........................................................................................................ 13 iii. Motion to confirm arbitration award ............................................................................ 15 iv. Subject-matter jurisdiction under the FAA .................................................................. 16 b. Plaintiff lacks standing to enforce the IDR Award ........................................................... 18 i. Plaintiff has no standing under the NSA to challenge the denied claim ....................... 20 ii. Plaintiff lacks standing under the FAA to enforce the IDR Award .............................. 22 1. The FAA does not independently confer jurisdiction ............................................... 23 2. Congress did not incorporate Section 9 of the FAA into the NSA ........................... 24 3. The NSA does not include an implied private right of action that incorporates Section 9 of the FAA ........................................................................................................ 26 c. Defendant’s motion to vacate the IDR award and Plaintiff’s cross-motions to confirm the IDR Award ................................................................................................................................ 32 III. Conclusion ............................................................................................................................ 36 Plaintiff Jeffrey Farkas, M.D., LLC commenced this action on January 3, 2025 against Defendant 1199 SEIU Benefit Fund pursuant to the No Surprises Act, 29 U.S.C. § 1185 et seq. (“NSA”) and the Federal Arbitration Act, 9 U.S.C § 9 (“FAA”), to confirm an independent dispute resolution (“IDR”) award (“IDR Award”), (Compl., Docket Entry No. 1), rendered on January 29, 2024, (id. ¶ 16). Plaintiff also seeks attorneys’ fees and costs. (Id. at 6.)

Defendant moved to dismiss the Complaint for lack of standing and failure to state a claim; Plaintiff opposed the motion and cross moved to confirm the IDR Award; and Defendant filed a cross-motion to vacate the IDR Award.1 For the reasons discussed below, the Court grants Defendant’s motion to dismiss this case and denies Plaintiff’s cross-motion to confirm the IDR Award. I. Background Plaintiff is a medical practice with its principal place of business in the state of New Jersey and is “comprised of a team of neurologists who specialize in acute treatment following strokes, brain aneurysms, carotid disease, and vascular problems of the brain, spine, and neck.”

(Compl. ¶¶ 1, 5.) Defendant is a “non-profit organization and multi-employer trust fund established in accordance with Section 186(c) of the Labor Management Relations Act of 1947 and an ‘employee welfare benefit plan’ as that term is defined in Employee Retirement Income Security

1 (Def.’s Not. of Mot. to Dismiss (“Def.’s Mot.”), Docket Entry No. 18; Def.’s Mem. in Supp. of Def.’s Mot. (“Def.’s Mem.”), Docket Entry No. 20; Pl.’s Not. of Cross-Mot. to Confirm Arb. Award (“Pl.’s Cross-Mot.”), Docket Entry No. 21; Pl.’s Mem. in Opp’n to Def.’s Mot. and in Supp. of Pl.’s Cross-Mot. (“Pl.’s Opp’n”), Docket Entry No. 23; Def.’s Not. of Cross-Mot. to Vacate IDR Determination (“Def.’s Cross-Mot.”), Docket Entry No. 26; Def.’s Reply in Supp. of Def.’s Mot., in Opp’n to Pl.’s Cross-Mot., and in Supp. of Def.’s Cross-Mot. (“Def.’s Reply”), Docket Entry No. 28; Pl.’s Reply in Supp. of Pl.’s Cross-Mot. and in Opp’n to Def.’s Cross-Mot. (“Pl.’s Reply”), Docket Entry No. 31; Def.’s Reply in Further Supp. of Def.’s Cross-Mot. (“Def.’s Cross-Mot. Reply”), Docket Entry No. 32.) Act of 1974, 29 U.S.C. 1001 et seq. (‘ERISA’).” (Aff. of Shelley Chun (“Chun Aff.”) ¶ 3, Docket Entry No. 27.) On March 8, 2023, Plaintiff performed surgery on a “[p]atient [who] was the beneficiary of a health plan issued or administrated by Defendant” (the “Patient”). (Compl. ¶ 6–7.) According to Plaintiff, it is an out-of- network provider and “does not have a network contract

with Defendant that would determine or limit payment for Plaintiff’s treatment of Defendant’s beneficiaries.” 2 (Id. ¶ 10.) After treating the Patient, Plaintiff submitted a claim form to Defendant seeking payment for six different claims. (Chun Aff. ¶ 11.) At issue in this case is Plaintiff’s claim for CPT codes 36226-LT3 for which Plaintiff billed Defendant $37,760.4 (Id. ¶

2 “Out-of-network providers are those who have not entered contracts for payment with the insureds’ health plans.” Tex. Med. Ass’n v. U.S. Dep’t of Health & Hum. Servs. 110 F.4th 762, 768 (5th Cir. 2024). 3 “CPT is a uniform coding system consisting of descriptive terms and identifying codes used primarily to identify medical services and procedures furnished by physicians and other health care professionals for which they bill public or private health insurance programs.” CTRS. FOR MEDICARE & MEDICAID SERVS, Healthcare Common Procedure Coding System (HCPCS), https://www.cms.gov/medicare/coding-billing/healthcare-common-procedure-system/ (last visited Mar. 31, 2026).

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Jeffrey Farkas, M.D., LLC v. 1199SEIU National Benefit Fund, (E.D.N.Y. 2026).

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