Opinion

Precision Surgical Associates Pc v. Auto Club Insurance Assn

Court
Michigan Court of Appeals
Filed
Apr 27, 2026
Status
Unpublished
Cited by
0 cases

The opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to

revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

PRECISION SURGICAL ASSOCIATES, PC, UNPUBLISHED

INSIGHT ANESTHESIA, PLLC, ALLIANCE April 27, 2026

ANESTHESIA, PLLC, INTEGRATED HOSPITAL 10:18 AM

SPECIALISTS, PC, and TIA R. SCOTT,

Plaintiffs-Appellees,

V No. 369750

Oakland Circuit Court

AUTO CLUB INSURANCE ASSOCIATION, LC No. 2022-197116-NF

Defendant-Appellant.

Before: LETICA, P.J., and RICK and BAZZI, JJ.

RICK, J. (concurring).

I concur in the result because it is required under Favot v Brown, ___ Mich App ___; ___

NW3d ___ (2025) (Docket Nos. 368733; 368734), which remains binding precedent. 1 See

MCR 7.215(J)(1). I write separately because I continue to believe that Favot was wrongly decided.

As framed by the majority, the dispositive question is whether the phrase “amount payable

under Medicare” in MCL 500.3157 encompasses all Medicare payment methodologies or instead

refers more narrowly to the fee schedule rates that establish the baseline value of a service. The

Favot Court adopted the broader interpretation, requiring incorporation of all rate-related Medicare

adjustments. Favot, ___ Mich App at ___; slip op at 7-8. In my view, that reading extends beyond

the statutory text.

The statute’s structure reflects a distinction between “rates in the fee schedule” and other

limitations affecting reimbursement. MCL 500.3157(15)(f). Although the “amount payable” is

derived from Medicare, the calculation begins with, and remains tethered to, the fee schedule rate

itself. Only after that baseline is established are any adjustments applied. See Favot, ___ Mich

App at ___; slip op at 7-8. Interpreting the statute to incorporate all downstream payment-

1

Leave to appeal in Favot is currently pending in our Supreme Court.

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reduction methodologies collapses this distinction and risks rendering the Legislature’s limiting

language superfluous. A more faithful reading confines “rate-related” limitations to those that

bear on the determination of the fee schedule rate itself, while excluding methodologies that merely

reduce reimbursement after that rate has been set. This construction preserves the statutory

distinction between rate-setting and post-rate adjustments and gives effect to the text’s exclusion

of limitations “unrelated to the rates in the fee schedule.” MCL 500.3157(15)(f).

Nonetheless, because Favot presently governs, I concur in the result.

/s/ Michelle M. Rick

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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