You are viewing a free summary from Descrybe.ai. For citation checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.

Matter of Global Liberty Ins. Co. v. ISurply, LLC

Citation: 2018 NY Slip Op 4961Docket: 7050N

Court: Appellate Division of the Supreme Court of the State of New York; July 3, 2018; New York; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves an appeal by Global Liberty Insurance Co. against a decision by the Supreme Court, Bronx County, which denied their petition to vacate a master arbitrator's award concerning reimbursement for medical equipment rental costs. At issue was whether the reimbursement rate for Continuous Passive Motion devices and Cold Therapy Units should follow a specific Medicaid reimbursement policy or be based on the general public's rental rate. The Appellate Division upheld the lower court's ruling, affirming that the master arbitrator's decision was rational and aligned with existing legal standards. Global Liberty Insurance Co. failed to provide sufficient evidence that the Department of Health (DOH) had set a reimbursement rate for the equipment in question. The arbitrator determined that the general public's rental charge should apply, as the 1/6th rental fee calculation was not officially adopted by the DOH for these items. Consequently, the arbitrator's award was confirmed, and Global's additional arguments were deemed unconvincing, leading to the affirmation of the original ruling.

Legal Issues Addressed

Burden of Proof in Challenging Arbitrator's Award

Application: Global's failure to demonstrate the DOH's adoption of a specific reimbursement rate resulted in the confirmation of the arbitrator's decision.

Reasoning: Consequently, as Global did not demonstrate that the DOH had adopted the 1/6th rental fee guideline or set a rental fee, the arbitrator's conclusion that the reimbursement rate would be based on the general public's rental charge was upheld.

Confirmation of Arbitration Awards

Application: The court confirmed the master arbitrator's award, as the decision was found to be neither irrational nor contrary to controlling law.

Reasoning: The Appellate Division affirmed the lower court's ruling, stating that the master arbitrator’s decision was not irrational and did not ignore controlling law.

Interpretation of Medicaid Fee Schedule

Application: The arbitrator interpreted that the 1/6th rental fee calculation applied only to items listed in the Medicaid fee schedule, excluding CPM and CTU.

Reasoning: The arbitrator concluded that the 1/6th rate applied only to specific DME items listed in the Medicaid fee schedule, which did not include the CPM and CTU.

Reimbursement Rates for Medical Equipment

Application: The legal standard for rental charges was determined to be based on the general public's rental charge due to the absence of a DOH established price for CPM and CTU devices.

Reasoning: Global failed to provide adequate evidence that the DOH had established a price for the rentals in question.