Reger v. Espy

836 F. Supp. 869, 1993 U.S. Dist. LEXIS 19815, 63 Empl. Prac. Dec. (CCH) 42,791, 1993 WL 464562
CourtDistrict Court, N.D. Georgia
DecidedOctober 27, 1993
Docket1:93-cv-02213
StatusPublished
Cited by2 cases

This text of 836 F. Supp. 869 (Reger v. Espy) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reger v. Espy, 836 F. Supp. 869, 1993 U.S. Dist. LEXIS 19815, 63 Empl. Prac. Dec. (CCH) 42,791, 1993 WL 464562 (N.D. Ga. 1993).

Opinion

ORDER

VINING, District Judge.

This matter is before the court on the plaintiffs motion for temporary, preliminary, and permanent injunctions. Oral arguments on the motion were held on October 11 and October 13, 1993.

The plaintiff is an employee of the Department of Agriculture (“Agriculture”) and is enrolled in the Blue Cross and Blue Shield Government-Wide Service Benefit Plan (“the Plan”), which is administered by Blue Cross and Blue Shield of Georgia, Inc. (“Blue Cross”). The Plan is offered by Blue Cross pursuant to a contract with the United States Office of Personnel Management (“OPM”), 1 as authorized by the Federal Employees Health Benefits Act (“FEHBA”). 5 U.S.C. § 8902(a).

The plaintiff has advanced breast cancer— Stage IV — and seeks insurance coverage for high-dose chemotherapy with autologous bone marrow transplant, commonly referred to as “HDC-ABMT”. Blue Cross denied the plaintiffs request for preauthorization of benefits, and OPM upheld that decision on appeal pursuant to its authority to make final administrative decisions on disputed claims. 5 U.S.C. § 8902(j).

The plaintiff subsequently filed suit in this court and moved for injunctive relief. Count I of the plaintiffs complaint is against defendants Blue Cross and OPM, and Count II is against the Department of Agriculture. In Count I, the plaintiff alleges that the exclusion of coverage for HDC-ABMT for breast cancer violates 5 U.S.C. § 8902(f) of FEHBA and is an arbitrary and capricious decision. In Count II, the plaintiff alleges that the denial of coverage by the Department of Agriculture violates Title VII of the Civil Rights Act of 1964, in that the exclusion of HDC-ABMT treatment for breast cancer has a disparate impact upon females.

A preliminary injunction will be granted only if the moving party establishes: (1) a substantial likelihood that she will prevail on the merits; (2) a showing that she will suffer *871 irreparable injury unless the injunction issues; (3) proof that the threatened injury to her outweighs whatever damage the proposed injunction may cause the opposing party; and (4) a showing that the injunction, if issued, would not be adverse to the public interest. Cunningham v. Adams, 808 F.2d 815, 818 (11th Cir.1987). The party seeking an injunction must prevail on all four prerequisites before a preliminary injunction may issue. Id.

Under FEHBA, health coverage is provided to federal employees through procurement contracts negotiated each year between OPM and a number of private carriers, and not through individual contracts between each federal employee and a private carrier. OPM is charged with the approval of health benefit plans under section 8902(d), which provides, “Each contract under this chapter shall contain a detailed statement of benefits offered and shall include such máximums, limitations, exclusions, and other definitions of benefits as the Office considers necessary or reasonable.” 5 U.S.C. § 8902(d). Judicial review of an agency action, including the exclusion of benefits, is governed by the Administrative Procedure Act. 5 U.S.C. § 706(2)(A). The court may set aside OPM’s actions only if they are arbitrary, capricious, or an abuse of discretion. Tackitt v. Prudential Insurance Co. of America, 758 F.2d 1572, 1575 (11th Cir.1985). A finding that the agency’s action is arbitrary and capricious would require the court to find that there is no rational basis for the decision. Id. (citing Bowman Transportation Inc. v. Arkansas-Best Freight Systems, 419 U.S. 281, 285-86, 95 S.Ct. 438, 441-42, 42 L.Ed.2d 447 (1974)). If the court determines that a rational connection exists between the evidence and the decision, then the court will defer to the expertise of the agency. Id.

There is no question that the Plan specifically excludes from coverage HDC-ABMT for breast cancer. The Plan provides, in relevant part:

What is Covered The following human organ/tissue transplant procedures: ...
• Autologous bone marrow (autologous stem cell support) and autologous peripheral stem cell support, for 1) Acute lymphocytic or non-lymphocytie leukemia, 2) Advanced Hodgkin’s lymphoma, 3) Advanced Non-Hodgkin’s lymphoma, 4) Advanced neuroblastoma, and 5) Testicular, Mediastinal, Retroperitoneal and Ovarian germ cell tumors ...

What is Not Covered

• Services or supplies for or related to surgical transplant procedures for artificial or human organ/tissue transplants not listed as specifically covered such as breast cancer (see page 44 for nonFEHB benefits). Related services or supplies include administration of high dose chemotherapy when supported by transplant procedures.

Declaration of Lucretia Myers (“OPM Declaration”), at ¶ 9, page 22 of the Service Benefit Brochure. In the section on inpatient care, the brochure further provides:

Limited benefits Other services

Chemotherapy when supported by bone marrow transplant or autologous stem cell support is only covered for specific diagnoses (see Organ/tissue transplants under Surgical-Medical benefits).

Page 20 of the Service Benefit Brochure.

The defendants maintain that OPM’s decision to exclude HDC-ABMT for breast cancer is not arbitrary and capricious because the available data is inconclusive as to whether that treatment is superior to standard chemotherapy. 2 Prior to 1991 HDCABMT was not covered in the Plan because it was deemed to be an experimental or investigational treatment. Beginning in 1991 the Plan specifically excluded HDC-ABMT for'most diagnoses, including breast cancer.

In late 1990 the Blue Cross Association in collaboration with the National Cancer Institute (“NCI”), developed and announced a project (the “Demonstration Project”) to support and complete four large, multi-center, randomized phase III trials testing HDC *872 ABMT in comparison to standard therapy in breast cancer. 3 At this time OPM permits the Plan to make monetary contributions to the Demonstration Project. Gleeson Affidavit at ¶ 11. Phase III trials are designed to compare the medical results of the' experimental therapy to a standard, accepted therapy.

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836 F. Supp. 869, 1993 U.S. Dist. LEXIS 19815, 63 Empl. Prac. Dec. (CCH) 42,791, 1993 WL 464562, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reger-v-espy-gand-1993.