A Philadelphia judge has put a halt to a possible class action lawsuit
against Independence Blue Cross (IBC) and its subsidiaries by denying
class certification, the first hurdle to such action.
The group of health care subscribers and providers -- led by Steven C.
Eisen, D.C. and other chiropractors -- had charged IBC with discriminating
against chiropractic and "rubber stamping" chiropractic claims
as not medically necessary.
According to an analysis by Jennifer Batchelor in The Legal
Intelligencer, Judge John W. Herron found that the actions by Blue
Cross were "not sufficiently typical for class action certification
and did not present predominating common questions of fact and law because
each plaintiff's claim hinged on an individual determination of medical
necessity."
Dr. Eisen said the decision was a "great disappointment," and
all the more frustrating because the judge used the same arguments as the
plaintiffs.
"The judge said that cases of medical necessity must be determined
on a case-by-case basis and therefore a class action suit was not a fair
and appropriate way to litigate this. The whole point of our suit was that
they use a cookbook approach -- which we documented -- and don't
approve care on a case-by-case basis," Eisen explained.
"Our attorneys said it was simply a wrong and bad decision,"
he added. "We will appeal, so it's not over yet. It was a setback but
I'm still optimistic we will prevail."
In the Intelligencer article, the plaintiffs' attorney D. Brian
Hufford of New York stated: "We thought that we had demonstrated that
there are systemic policies and procedures that had been adopted by [Blue
Cross] which improperly denied coverage for chiropractic care or
alternatively led to refusals to reimburse chiropractors for medically
necessary care. Unfortunately, the court saw it a different way."
According to the court opinion, issued July 26, 2002, some 500
chiropractors and 2.8 million subscribers could be affected by the class
action members if it is permitted.