Ross v. Blue Care Network of Michigan

747 N.W.2d 828, 480 Mich. 153
CourtMichigan Supreme Court
DecidedApril 23, 2008
DocketDocket 131711
StatusPublished
Cited by17 cases

This text of 747 N.W.2d 828 (Ross v. Blue Care Network of Michigan) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ross v. Blue Care Network of Michigan, 747 N.W.2d 828, 480 Mich. 153 (Mich. 2008).

Opinions

Taylor, C. J.

At issue in this action brought pursuant to the Patient’s Right to Independent Review Act (PRIRA), MCL 550.1901 et seq., is whether the Commissioner of the Office of Financial and Insurance Services (OFIS)1 is bound by the recommendations of an independent review organization (IRO) on issues of medical necessity and clinical review. We conclude that the act provides that the commissioner is not bound by such recommendations. Accordingly, we reverse the judgment of the Court of Appeals and the order of the trial court that held to the contrary and remand this matter to the trial court for further proceedings consistent with this opinion.

I. FACTUAL BACKGROUND AND PROCEDURAL POSTURE

Douglas Ross was covered under the health maintenance organization (HMO) health plan of respondent [156]*156Blue Care Network of Michigan (BCN). The certificate of coverage excluded out-of-network services that were not preauthorized.2 However, it did provide coverage for medically necessary services without prior authorization in cases of immediate and unforeseen medical emergency, but only until such time as it became medically feasible to transfer the person covered under the health plan to an in-network provider.3

[157]*157In March 2002, Ross contracted an acute form of multiple myeloma. Ross was referred to the University of Michigan Medical Center, an in-network provider, which in a May 28, 2002, letter recommended to Dr. Stephen Goldfarb, one of Ross’s oncologists, that Ross receive a stem-cell transplant and advised that it had given Ross information on bone-marrow transplants and instructed Ross to discuss this option with Dr. Goldfarb. According to Desiree Ross (petitioner), who is Ross’s wife and the personal representative of his estate, Ross’s condition began to spiral out of control toward the end of June 2002, Ross’s oncologist told him that he was no longer eligible for treatment at the University of Michigan Medical Center because the cancer had spread to his soft tissue, and Ross was consigned to palliative treatment. She also claimed that Dr. Ronald Lutsic, a radiation oncologist, told her in June 2002 that Ross’s prognosis was dismal and that if he were Ross, he would go to the Myeloma Institute in Little Rock, Arkansas (the facility), one of two facilities in the world at the forefront of treating multiple myeloma.

Petitioner called Ross’s primary care physician (PCP), Dr. Michael Silverstone, to ask for a referral to the facility, which was not a BCN in-network provider. BCN advised that it needed to review the facility’s treatment plan and that it would take 10 to 14 days to review the request. The facility said that it could not provide a treatment plan without first evaluating Ross.

On July 2, 2002, Ross went to Arkansas and began an evaluation at the facility without BCN’s approval. On July 8, 2002, Dr. Frits van Rhee, the evaluating doctor, admitted Ross to the hospital, noting that without [158]*158aggressive intervention, Ross had only about seven days to live. Ross was hospitalized from July 8, 2002, to July 23, 2002. The July 23, 2002, discharge summary indicated that Ross was “stable for discharge and outpatient followup . . ..” In the meantime, Ross had received notices from BCN on July 9, July 15, and July 16 denying coverage for treatment at the facility because either the services were available in-network or there was no referral from his PCIJ and advising Ross to contact his PCP for a referral to an in-network provider.

Although petitioner claimed that BCN never informed her of any in-network providers that could treat Ross’s condition, she did not indicate that she had contacted Ross’s PCP as advised by BCN for such a referral, and she did not present any evidence that the University of Michigan Medical Center was unable to administer the same treatment Ross received at the facility. Ross continued with both outpatient and inpatient treatment at the facility without BCN’s authorization until March 2003. He died on April 6, 2003. BCN refused to cover any evaluation or treatment at the facility.

On December 18, 2002, pursuant to BCN’s internal procedures, petitioner initiated a “step one” appeal of the denial of coverage for Ross’s treatment at the facility that had begun on June 30, 2002. BCN denied the appeal on January 9, 2003, because (1) the PCP had not referred Ross, (2) BCN had not authorized the services and there was no indication that the services were not available in-network, and (3) BCN considered the facility’s services to be experimental. On February 6, 2003, petitioner filed a “step two” internal appeal, which BCN denied. On April 28, 2003, petitioner appealed to OFIS under PRIRA. The commissioner accepted the request and assigned the case to an IRO.

[159]*159The IRO’s initial report, dated May 16, 2003, indicated that “this must be considered an emergency evaluation and admission in the mind of a prudent patient,” that attempts were made to use in-network providers, that Ross was not offered a reasonable alternative plan of care that would address his condition, and that the treatment he received at the facility should not have been considered experimental. After receiving the initial report, the commissioner repeatedly sought to compel the IRO to apply the contractual and statutory standards rather than the IRO-imposed prudent-patient standard for evaluating an emergency,4 sending [160]*160the IRO three requests for clarification whether the June 30, 2002, outpatient consultation, the July 8, 2002, to July 23, 2002, inpatient admission, the August 1, 2002, to August 2, 2002, inpatient admission, and the [161]*161September 9, 2002, to November 17, 2002, follow-up testing constituted emergency care, which would be covered under the certificate of coverage, as well as under MCL 500.3406k,5 and whether Ross became stabilized at any point so as to make it medically feasible to transfer him to an in-network facility.

The IRO responded that Ross was admitted to the facility on an emergency basis and that it was not appropriate to transfer him to an in-network facility for treatment or follow-up because the in-network facility was not involved in Ross’s treatment. In the IRO’s last two responses, it stated that it was not medically feasible to transfer Ross from July 8, 2002, to July 23, [162]*1622002, and that it was inappropriate to unbundle the remaining care provided. The only time the IRO stated that it was not medically feasible to transfer Ross was in response to the commissioner’s question regarding the July 8, 2002, to July 23, 2002, admission. The IRO recommended on three separate occasions that BCN’s denial of petitioner’s claim be overturned.

The commissioner found that only the inpatient admission to the facility from July 8, 2002, to July 23, 2002, was a medical emergency under the definition of “emergency care” in BCN’s health plan.

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Ross v. Blue Care Network of Michigan
747 N.W.2d 828 (Michigan Supreme Court, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
747 N.W.2d 828, 480 Mich. 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ross-v-blue-care-network-of-michigan-mich-2008.