Provider EUO letter – serve to delay the bills

Stracar Med. Servs. v State Farm Mut. Auto. Ins. Co., 2018 NY Slip Op 51759(U)(App. Term 2d Dept. 2018)

(1) “Plaintiff does not dispute that a letter scheduling its EUO was mailed to plaintiff on December 13, 2011, or that a follow-up scheduling letter was timely mailed. Contrary to plaintiff’s main contention on appeal, once that initial letter was mailed to plaintiff, the toll of defendant’s time to pay or deny plaintiff’s claims applied to any claim form submitted by plaintiff for the same assignor and accident subsequent to that request, but before plaintiff breached a policy condition by failing to appear for two properly scheduled EUOs”

(2) “While plaintiff notes that the first EUO scheduling letter was mailed 16 business days after defendant’s receipt of two bills on November 18, 2011, which is one day later than is set forth in the Insurance Department Regulations (11 NYCRR 65-3.5 [b]) for the time to seek verification, it fails to explain why this should result in even the partial denial of defendant’s motion, since the denial of claim forms with respect to those two bills were mailed 21 days after plaintiff’s failure to appear for the second EUO (see 11 NYCRR 65-3.8 [l] [providing that deviations from the verification time frames reduce the 30 days to pay or deny the claim by the same number of days that the verification request was late]).”

Well, Plaintiff  argued that in Unitrin v. All About Health, the First Department construed 15 business days to mean 15 calendar days and did not apply the 65-3.8(l) day for day logic.   But the Appellate Term found that logic to be unavailing.  

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