Appeals Court: Failure to Respond Is Consent to Medical Necessity - Make Your Revenue Smarter

Medical Economics – March 16, 2009.

This material originally appeared in the March 6, 2009, issue of Health Lawyers Weekly, a publication of the American Health Lawyers Association (www.healthlawyers.org).

On February 27, the Florida District Court of Appeal, First District, found that an insurance carrier forfeits its right under state law to contest the medical necessity of a request for authorization for referral for medical treatment if the carrier fails to respond to the request. The appeals court found that it was an error for the JCC to deny an authorization for the pain management referral on the ground that it was not medically necessary.  Click title to read more…

Gail Elmer filed suit requesting: (1) authorization for referral to a pain management specialist recommended by her authorized treating physician; (2) an award of palliative care; and (3) attorneys’ fees and costs. The Judge of Compensation Claims (JCC) found that defendant, Elmer’s employer and insurance carrier, failed to respond to repeated written requests by Elmer’s treating physician for a referral to a pain management specialist. However, the JCC went on to conclude that Elmer was not entitled to a referral because it was not medically necessary, and therefore denied her requests.

Elmer challenged the decision, arguing that, pursuant to either section 440.13(3)(d) or (i) of the Florida Statutes (2002), defendant was estopped from arguing the referral was not medically necessary because it failed to timely respond to her doctor’s written referral requests.

The appeals court noted that section 440.13(3)(d) provides that:

A carrier must respond, by telephone or in writing, to a request for authorization by the close of the third business day after receipt of the request. A carrier who fails to respond to a written request for authorization for referral for medical treatment by the close of the third business day after receipt of the request consents to the medical necessity for such treatment.

In Elmer’s subsequent appearl, the appeals court highlighted that defendant did not respond to Elmer’s doctor’s multiple requests for authorization for referral to a pain management specialist within either three or ten business days after receiving them.

“If there is no response, the plain language of statute provides that the [carrier] has consented to the medical necessity of the treatment,” the appeals court said. Thus, defendant has forfeited the right to contest the medical necessity of the referral here.

As a result, it was error for the JCC to deny an authorization for the pain management referral on the ground that it was not medically necessary, the appeals court found.

Elmer v. Southland Corp., No. 1D08-3394 (Fla. Dist. Ct. App. Feb. 27, 2009).

Read original article

 

Comments are closed.