CopyCited 23 times | Published | Supreme Court of Florida
...e. A medical service provider may bring a cause of action as a third-party beneficiary to the contract between the health maintenance organization and its subscriber based on allegations that the health maintenance organization failed to comply with section 641.3155, Florida Statutes (2001), the "prompt pay provisions" of the Health Maintenance Organization Act....
...rance/health maintenance policies." Westside claimed it was a third-party beneficiary to "such insurance/health maintenance contracts," and "[d]espite repeated demands," the defendant-HMOs had breached this contract by, among other things, violating section
641.3155, Florida Statutes (2001), the "prompt pay provisions" of Florida's Health Maintenance Organization Act ("HMO Act"), and sections
641.17-641.3923, Florida Statutes (2001)....
...[3] "As a direct and proximate result of such Breach of the Third Party Beneficiary Contracts," Westside claimed it "suffered damages in the amount of outstanding balances for its charges for services, together with interest and reasonable attorneys fees and costs." Section 641.3155 provides a time frame in which HMOs must respond to and pay claims properly submitted by medical service providers. At the time Westside filed its complaint in 2001, the pertinent part of the statute read as follows: *192 641.3155 Payment of Claims....
...ian's contract, for providing inpatient services in a contracted hospital to a subscriber, if such services are determined by the organization to be medically necessary and covered services under the organization's contract with the contract holder. § 641.3155, Fla....
...In addition, this statute defined the term "clean *193 claim," [4] imposed nearly reciprocal obligations on providers to respond to an HMO's claim for overpayment, and required that the amount of overpayment be reconciled to specific claims unless the parties agree otherwise. § 641.3155(1), (5)-(6), Fla....
...Id. We agree with the Fourth District. As we explain below, medical service providers may bring a breach of contract action as a third-party beneficiary of the contract between the HMO and its subscriber based upon the HMO's failure to comply with section 641.3155, Florida Statutes (2001). ANALYSIS I. Framework for Review The question at issue requires us to interpret the HMO Act, particularly section 641.3155, its "prompt pay provisions;" *194 therefore, the standard of review is de novo....
...om establishing that the contracting parties had a "clear or manifest intent" to benefit Westside. We conclude that, given the significant statutory regulation surrounding HMO contracts and the integral role the "prompt pay provisions" play in them, section 641.3155 may be incorporated into the HMO contract....
...on. See A.R. Moyer, Inc. v. Graham,
285 So.2d 397, 402 (Fla.1973) ("Without viewing the [contract at issue], which is absent from the record, we are unable to speculate if a cause of action would exist."). As the Fourth District correctly concluded, section
641.3155 can be incorporated into the HMO contract....
...Such an incorporation supports the first and third elements of the claim. Moreover, there is no basis to conclude that Westside is precluded, as a matter of law, from establishing the second element because of its status as a nonparticipating provider. B. Statutory Incorporation As stated earlier, we conclude that section 641.3155 (the "prompt pay provisions") may be incorporated into an HMO contract for the purpose of establishing a breach of contract cause of action when the provider's claim is for a service the HMO is required to provide under either the HMO Act or the HMO contract at the time the claim is filed....
...1 (1983), for the proposition that "[a]lthough . . . HMOs are not (traditionally defined) insurance companies, . . . the same contract construction rules apply"). So treated, the principles of statutory incorporation permit the "prompt pay provisions" of section 641.3155 to be considered an implicit part of every HMO contract....
...ued in Florida" because the statute addressed *196 a subject that was present in every insurance dispute and because another provision of the Florida Insurance Code supported incorporating this statute). Admittedly, the HMO Act does not mandate that section 641.3155 be included in HMO contracts....
...In fact, "[a] claim for treatment may not be denied" in this situation, "unless the provider provided information to the [HMO] with the willful intention to misinform the [HMO]." §
641.3156(2). The details set forth in the "prompt payment provision," section
641.3155, provide essential substance to the HMO's liability for services rendered to its subscribers....
...Here, the statutory language recognizing that a civil cause of action may be brought to enforce the HMO contract is particularly persuasive. HMOs enter into these contracts "to provide an agreed-upon set of comprehensive health care services to subscribers in exchange for a prepaid [fee]." §
641.31(1). As stated earlier, section
641.3155 simply provides essential details of how the HMOs are to pay medical providers for these services....
...In light of this, it is difficult to see how any HMO could enter into such contracts without assuming that the "prompt payment provision" is implicit therein. Given the above, we conclude that unless the terms of the individual HMO contract or the HMO Act properly provides otherwise, section 641.3155 may be incorporated as a term in the HMO contract for the *197 purpose of alleging a breach of third-party beneficiary contract claim....
...ave done so in regard to any of Westside's claims. Furthermore, this excerpt also requires HMOs to pay "other person[s] as required by law," and under the HMO Act, even nonparticipating providers may be persons entitled to payment by law. See, e.g., § 641.3155(4) (recognizing that an HMO's failure to pay or deny "any claim no later than 120 days after receiving [it] ....
...ppler color flow interpretations, Holter twenty-four-hour interpretations, stress test physician supervision, and stress test interpretations. [3] Although Westside's count for breach of third-party beneficiary contract does not specifically mention section
641.3155, this count incorporated Westside's general allegations concerning the prompt pay provision of section
641.3155, alleging that the HMOs failed to make payment or contest payment within forty-five days. Westside specifically alleged violations of section
641.3155 as well as section
627.613, Florida Statutes (2001), in the other two counts of its amended complaint. Section
627.613 provides time periods in which health insurers must pay claims for medical services. It imposes requirements similar to section
641.3155; however, HMOs with a valid certificate of authority are excluded from the provisions of the Florida Insurance Code, unless expressly stated otherwise. See §§
641.201,
641.30(2), Fla. Stat. [4] In essence, a "clean claim" is defined in section
641.3155(1), Florida Statutes (2001), as a claim submitted without any defect or impropriety and with the proper substantiating paperwork. This term does not appear in the current version of section
641.3155, as the statute now defines a "claim" as the appropriate paper or electronic billing instrument. §
641.3155(1), Fla. Stat. (2005). [5] Section
641.3155 has been amended numerous times since Westside filed its complaint in 2001....
CopyCited 9 times | Published | Florida 4th District Court of Appeal | 2005 WL 1026183
...iation Act (Act), chapter 641, Florida Statutes, for the improper processing of providers' claims for medical services rendered to HMO subscribers. Westside claims HMOs failed to comply with the "prompt pay" provisions of the Act, primarily found in section 641.3155....
...Lissenden Co. v. Bd. of Cty. Comm'rs of Palm Beach,
116 So.2d 632 (Fla.1960); Citizens Ins. Co. v. Barnes,
98 Fla. 933,
124 So. 722 (1929). The Act requires that health maintenance organizations pay or deny a claim no later than 120 days after receipt. §
641.3155(2),(4), Fla. Stat. Failure to do so results in an uncontestable obligation that the health maintenance organization pay the claim to the health care provider. Id. See §
641.3155(4)....
...principles. Id. at 892; see also Orion Ins. Co. v. Magnetic Imaging Sys. I,
696 So.2d 475, 478 (Fla. 3d DCA 1997). Kaklamanos is significant, as the regulatory scheme for the Act is patterned after provisions in the Florida Insurance *220 Code. [3] Section
641.3155 contains provisions similar to those found in the PIP statute section
627.736(4), Florida Statutes. Section
641.3155(2)-(3) imposes deadlines for the HMO to contest or deny claims, to take other action, and obligates the HMO to pay interest on overdue payments....
...COURTS IN AN ACTION FOUNDED ON PRINCIPLES OF BREACH OF CONTRACT BROUGHT AGAINST A HMO BY A SERVICE PROVIDER? FARMER, C.J., and TAYLOR, J., concur. NOTES [1] When a HMO is liable for payment to a service provider based on an uncontestable claim under 641.3155(c), an administrative procedure is established under section 408.7056, Florida Statutes, of the Health Care Administration Act....
CopyCited 2 times | Published | District Court, M.D. Florida
...2) In Count I, Plaintiff alleged that Defendant failed to pay the proper rate for health care claims in violation of Fla. Stat. §
641.513 (5). ( Id. at ¶¶ 24-34 ) In Count II, Plaintiff asserted that Defendant failed to make timely payments in violation of Fla. Stat. §§
641.3155 and
627.6131....
...Florida Law Overview Florida law requires HMOs, such as Defendant, to reimburse out-of-network emergency medical service providers, such as Plaintiff, within certain time parameters and at specified rates for emergency services medical treatment. See Fla. Stat. §§
641.513 (5),
641.3155(3),
627.6131(4)(b), and
627.64194....
...nity where the services were provided; or (c) The charge mutually agreed to by the health maintenance organization and the provider within 60 days of the submittal of the claim. Fla. Stat. §
641.513 (5). Secondly, Plaintiff asserts its claims under §
641.3155, a provision of Florida's "Prompt Pay Act" mandating that HMOs must respond to and pay medical service provider claims in accordance with specified requirements. Fla. Stat. §
641.3155 . Specifically, §
641.3155(3)(b) states that "within 20 days after receipt of [an electronically submitted] claim" an HMO "shall ......
...e insurer can reasonably determine are necessary to process the claim. 2. A provider must submit the additional information or documentation, as specified on the itemized list, within 35 days after receipt of the notification. Id. at (3)(c). Lastly, § 641.3155(4) establishes the time requirements for nonelectronically submitted claims....
...The third statute Plaintiff cites is §
627.6131, a section of the Florida Insurance Code imposing time and documentation requirements concerning the payment of health insurance claims. Fla. Stat. §
627.6131 . The language and requirements in the applicable provisions of this section are identical to the cited provisions of §
641.3155. compare id. at (4)-(5), with Fla. Stat. §
641.3155 (3) - (4). For example, § 627.61314 imposes the same requirement that is mandated under §
641.3155 for an insurer to pay or deny an electronically submitted claim "within 20 days." Fla....
...§
627.6131 (4)(b). Additionally, §
627.6131 also similarly instructs that an insurer's failure to respond to a claim "within 120 days after receipt of the claim creates an uncontestable obligation to pay the claim." Id. at (4)(e). Subsection (4)(c) also echoes §
641.3155(3)(c) concerning the required documentation that must accompany any contested or denied claim. Id. at (4)(c). Likewise, §
627.6131(5) parrots §
641.3155(5)'s mandate concerning the procedure for nonelectronically submitted claims....
...n Plaintiff's capacity as a third party beneficiary. (Dkt. 2 at 1, 5-7) Accordingly, Plaintiff cannot rely on §
641.513 to establish an independent legal duty in the Pinellas County Cases. For the same reason, the remaining claims, asserted under §§
641.3155 7 and
627.6131, must also be similarly construed under a third party beneficiary theory....
...3; (Dkt. 55); compare Hillsborough County First-Filed Case , Docket No. 2 at 5-10; with Premier Inpatient Partners, LLC, (D.A.Z.) , 8:19-cv-00242-MSS-AAS, Docket No. 1-1. Additionally, a review of the Florida HMO Act's "prompt pay" laws reveals that § 641.3155 does not expressly authorize a private cause of action to enforce its provisions....
...6:12-cv-100-Orl-22DAB,
2013 WL 12149554 , at *3,
2013 U.S. Dist. LEXIS 195495 , at *9 (M.D. Fla. Jan. 2, 2013) (quoting Found. Health v. Westside EKG Assocs. ,
944 So.2d 188 , 190 (Fla. 2006) (internal quotation and citation omitted) ). Accordingly, under §
641.3155, medical service providers may only "bring a cause of action under the "prompt pay" laws as a third-party beneficiary to the contract between the [HMO] and its subscriber based on allegations that the HMO failed to comply with §
641.3155, Fla. Stat." Id. Consequently, even if asserted as direct actions, Plaintiff's claims under §
641.3155 are viable only under a third-party beneficiary theory and do not amount to an "independent" legal duty under Davila .