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Boise Cascade Corp. v. Huizar

Citations: 76 Wash. App. 676; 887 P.2d 417Docket: No. 13328-1-III

Court: Court of Appeals of Washington; December 20, 1994; Washington; State Appellate Court

Narrative Opinion Summary

In this case, a self-insured employer, Boise Cascade Corporation, appeals summary judgment orders requiring it to pay for surgeries performed on two employees, Mr. Huizar and Mr. Wentz. The primary legal issues involve the requirement of prior authorization for surgeries under WAC 296-20-03001 and the applicability of WAC 296-20-097 in contested claim reopenings. Mr. Huizar’s claim, following a 14-year procedural history involving an industrial injury, was reopened by the Department of Labor and Industries (L&I) without prior authorization due to a contested claim. The court affirmed that WAC 296-20-097 allows claim reopenings without prior authorization, supporting the decision to grant summary judgment in Mr. Huizar’s favor. Mr. Wentz’s surgery was also performed without prior authorization, but the Board found sufficient medical evidence establishing a causal link to his industrial injury, leading to a reversal of L&I’s denial. The court upheld the Board’s decision, supporting summary judgment for the employees, and emphasized the harmonization of regulatory provisions with the legislative intent of the Industrial Insurance Act. Ultimately, the court ruled that Boise Cascade must cover the surgical expenses, aligning with the Industrial Insurance Act’s goal to prevent undue suffering and economic loss from workplace injuries.

Legal Issues Addressed

Billing Timelines under Former WAC 296-20-125(5)

Application: The regulation requires vendors to submit bills within ninety days post-service; however, litigation can affect these timelines.

Reasoning: Former WAC 296-20-125(5) stated that vendors should bill monthly and submit bills within ninety days of service for payment consideration.

Causal Relationship and Treatment Authorization

Application: The Board found sufficient medical evidence to establish a causal relationship between Mr. Wentz's surgery and his industrial injury, overturning the denial of payment.

Reasoning: The Board found that Dr. Orvald's letters provided sufficient medical evidence linking the surgery to Wentz’s industrial injury.

Payment for Accepted Claims under RCW 51.36.085

Application: The court determined that payment for accepted claims is due within 60 days of the final adjudication, validating the timing of the billing received after the reopening of Mr. Huizar's claim.

Reasoning: According to RCW 51.36.085, payment for accepted claims is due within 60 days of final order or judgment—supporting the trial court's decision to grant summary judgment for Mr. Huizar.

Prior Authorization for Medical Procedures under WAC 296-20-03001

Application: The surgeries were deemed unauthorized due to lack of prior approval, as required under WAC 296-20-03001, for cases where claims are not contested.

Reasoning: Boise Cascade argues it is not liable for the surgery costs due to the lack of prior authorization as mandated by WAC 296-20-03001.

Reopening of Claims under WAC 296-20-097

Application: In contested cases, WAC 296-20-097 supersedes the prior authorization requirement, allowing reopening of claims without prior authorization if contested.

Reasoning: WAC 296-20-097, addressing claim reopenings, supersedes the prior authorization requirement of WAC 296-20-03001 in contested cases.