432 P.3d 476
Wyo.2018Background
- Three air-ambulance providers (Air Methods, EagleMed, Med-Trans) billed Wyoming Workers' Compensation Division for services (2012–2016); Division paid only amounts under its fee schedule, leaving substantial underpayments.
- Claimants objected, asserting the Airline Deregulation Act (ADA) preempted the Division's fee schedule; proceedings were stayed pending federal litigation.
- U.S. District Court (D. Wyo.) held the ADA preempted the fee schedule and (in amended judgment) directed full payment; defendants appealed; the case reached the Tenth Circuit.
- Tenth Circuit affirmed preemption and the injunction against enforcing the rate schedule but reversed the district court's broader order compelling full payment, leaving the question of any duty to pay to state law.
- The OAH (administrative body) found § 27-14-401(e) severable; as severed it required the Division to pay air-ambulance charges in full; OAH denied Air Methods’ later motion for pre- and post-judgment interest.
- Wyoming Supreme Court affirmed: § 27-14-401(e) is severable and, combined with ADA preemption, requires payment of full billed amounts; OAH lacked statutory authority to award interest on contested workers’ compensation claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal courts erred in ADA preemption analysis (misreading state law on balance-billing) | Division: federal courts misinterpreted §27-14-501(a); balance-billing prohibition does not apply to air ambulances, so fee schedule doesn’t regulate rates | Claimants: federal rulings binding; argument not raised below; preclusion applies | Not reached on merits — new theory not raised below; court declined to consider it |
| Whether §27-14-401(e) is severable and, if severed, whether it requires Division to pay full billed amounts | Claimants: statute severable; as severed authorizes payment of full charges when ADA preempts rate limits | Division: severability was wrongly applied; Tenth Circuit narrowed relief; severed statute cannot be read to compel full payment | Held severable under state law; as severed (“shall allow a charge”) plus ADA preemption means Division may not cap rates and must pay full billed amounts |
| Whether OAH order directing payment violates state constitutional appropriation rules (Art. 16 §7) | Division: ordering payments without appropriation violates constitution | Claimants: workers’ compensation is a continuing appropriation; severed statute authorizes payment | No violation — workers’ compensation is a continuing appropriation; severed §401(e) authorizes payment |
| Whether OAH had jurisdiction and statutory authority to award pre- and post-judgment interest | Air Methods: OAH retained jurisdiction to decide interest; general interest statute or implied authority allows interest | Division: OAH lost jurisdiction when petition for review filed; Worker's Compensation Act does not authorize interest | OAH had jurisdiction to hear interest motion, but lacked statutory authority to award interest; general interest statute does not apply to administrative awards; implied authority refused |
Key Cases Cited
- EagleMed, LLC v. Cox, 868 F.3d 893 (10th Cir. 2017) (ADA preempts state rate-setting; appellate narrowing of district court's injunction)
- EagleMed, LLC v. Wyoming ex rel. Dep't of Workforce Serv., Workers' Comp. Div., 227 F. Supp. 3d 1255 (D. Wyo. 2016) (district court held ADA preempted the fee schedule and directed payment of full charges)
- Rutti v. State, 100 P.3d 394 (Wyo. 2004) (severability is a matter of state law; valid portions enforceable if they accomplish statute's purpose)
- Appleby v. State ex rel. Wyo. Workers' Safety & Comp. Div., 47 P.3d 613 (Wyo. 2002) (worker's compensation scheme prioritizes quick and efficient delivery of benefits over cost control)
- Hot Springs County Sch. Dist. No. 1 v. Strube Constr. Co., 715 P.2d 540 (Wyo. 1986) (general interest statute applies to judgments, not to non-judicial awards)
- World Mart, Inc. v. Ditsch, 855 P.2d 1228 (Wyo. 1993) (clarifies limits of applying general interest statute to administrative awards)