Louisiana Hospital Ass'n v. State

168 So. 3d 676, 2013 La.App. 1 Cir. 0579, 2014 La. App. LEXIS 3077, 2014 WL 7403574
CourtLouisiana Court of Appeal
DecidedDecember 30, 2014
DocketNo. 2013 CA 0579
StatusPublished
Cited by5 cases

This text of 168 So. 3d 676 (Louisiana Hospital Ass'n v. State) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana Hospital Ass'n v. State, 168 So. 3d 676, 2013 La.App. 1 Cir. 0579, 2014 La. App. LEXIS 3077, 2014 WL 7403574 (La. Ct. App. 2014).

Opinions

PETTIGREW, J.

|2In this appeal, plaintiffs challenge the trial court’s judgment, granting summary judgment in favor of defendants and dismissing, with prejudice, plaintiffs’ petition for preliminary and permanent injunction and declaratory relief. For the reasons that follow, we reverse in part, vacate in part, and remand for further proceedings.

FACTS AND PROCEDURAL HISTORY

The facts of this case are not in dispute. On August 29, 2012, Governor Bobby Jin-dal issued Executive Order No. BJ 2012-16 (“Executive Order”), to provide for the “LIMITED TRANSFER OF AUTHORITY TO COMMISSIONER OF INSURANCE FOR EMERGENCY RULES FOR HURRICANE ISAAC.” The Executive Order provided, in pertinent part, as follows:

WHEREAS, in accordance with R.S. 29:724,
WHEREAS, families and businesses may have suffered damages due to Hurricane Isaac and its aftermath or may have to relocate temporarily due to mandatory or voluntary evacuations and/or damage to their dwellings or offices;
WHEREAS, in addition to the displacement of citizens and disruption of business operations, Hurricane Isaac may cause interruption of communications, including phone service, internet service, and delivery.of mail in numerous areas throughout Louisiana;
WHEREAS, in the ordinary course of business, insurance companies send notices to their insureds, many of which are required by law to be responded to within specified time limits with consequences for failure to do so;
WHEREAS, State law also provides requirements for the approval and denial of claims by insurers, though compliance may not [be] practical or possible;
WHEREAS, Commissioner of Insurance James J. Donelon has advised the Governor that citizens in Louisiana are at risk with regard to any and all kinds of insurance; and
WHEREAS, Commissioner of Insurance James J. Donelon has requested that the Governor authorize him to suspend laws regarding legal deadlines and certain processes and procedures applicable to Louisiana citizens who on 12:01 A.M., August 26, 2012, resided in certain parishes, regarding any and all insurance matters, including but not limited to flood insurance, homeowners insurance, life .insurance, health and accident insurance, limited benefit insurance, vehicle insurance, liability insurance, workers’ compensation insurance, burglary and forgery insurance, glass insurance, fidelity and surety insurance, title insurance, fire and extended coverage insurance, steam boiler and sprinkler leakage insurance, crop and livestock insurance, marine and transportation insurance, credit life insurance, medical supplement insurance, credit property and casualty insurance, annuity insurance, HMOs, professional and medical malpractice liability insurance, property and casualty insurance, all surplus lines insurance, self insurance funds, disability insurance, reciprocal insurance, long term [680]*680care insurance, short term health insurance, stop loss insurance, excess loss insurance, commercial general insurance, Medicare supplement insurance, preferred provider organizations, managed care organizations and any and all other insurance related entities licensed by the Commissioner or doing business in Louisiana;
NOW THEREFORE I, BOBBY JIN-DAL, Governor of the State of Louisiana, by virtue of the authority vested in me by the Constitution and laws of the State of Louisiana, do hereby order and direct as follows:
SECTION 1: Commissioner of Insurance James J. Donelon shall have limited transfer of authority to act only according to the requirements for implementation of Emergency Rule 26, Title 37. The Governor’s authority pursuant to R.S. 29:724 to suspend provisions of any [4regulatory statute prescribing the procedures for conduct of State business, or the orders, rules or regulations of the Department of Insurance is transferred to Commissioner of Insurance James J. Donelon for purposes of enacting and enforcing Emergency Rule 26, Title 37.
SECTION 2: This limited transfer of authority referenced in Section 1 specifically includes but is not limited to the authority to suspend applicable statutes, issue any rules, regulations, and directives or take any other action that Commissioner James J, Donelon deems necessary for purposes of Emergency Rule No. 26 to protect the public health, safety, and welfare of the citizens of Louisiana who were affected by Hurricane Isaac and on 12:01 AM, August 26, 2012, resided in those parishes of Louisiana specified in Emergency Rule No. 26.
SECTION 3: Any rules, regulations, directives or any other actions taken by Commissioner of Insurance James J. Donelon to effectuate Emergency Rule No. 26 shall have the full force and effect as if said rules, regulations, directives or any other actions were, issued by the Governor of the State of Louisiana.
SECTION 4: The Governor of the State of Louisiana shall retain his power, coterminous with the power transferred to Commissioner of Insurance James J. Donelon, to issue any rules, regulations, directives or take any other actions with regard to any and all insurance matters necessary to protect the public health, safety and welfare of the citizens of Louisiana.
SECTION 5: This limited transfer of authority shall remain in full force and effect for the duration of Emergency Rule No. 26, which is until September 25, 2012.
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Relying upon the transfer of authority from Governor Jindal, the State of Louisiana through the Department of Insurance, and James J. Donelon, in his capacity as Commissioner of the Department of Insurance (the “Commissioner”) (collectively “the Department”), promulgated Emergency Rule 26 (“Rule 26”), which in pertinent part, temporarily banned the practice of “balance billing” by out-of-network health care providers as discussed in detail below.2 Pursuant to § 4767 of Rule 26, it [681]*681became effective at 12:01 a.m. on August 26, 2012, and was “in full force and effect until 12:01 a.m. ^September 25, 2012,” As originally implemented, Rule 26 did not contain any geographical limitations. Specifically, § 4701(A) provided as follows:

The benefits, entitlements and protections of Emergency Rule 26 shall be applicable to insureds who, as of 12:01 a.m. on August 26, 2012, had a policy, insurance contract or certificate of coverage for any of the types of insurance enumerated in § 4708 and reside in the state of Louisiana. Insureds shall include, but not be limited to, any and all policyholders, members, subscribers, en-rollees and certificate holders.

However, this statewide version of Rule 26 was only in place from August 26, 2012 through September 8, 2012, when Rule 26 was amended by the Commissioner.

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Bluebook (online)
168 So. 3d 676, 2013 La.App. 1 Cir. 0579, 2014 La. App. LEXIS 3077, 2014 WL 7403574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-hospital-assn-v-state-lactapp-2014.