Deleted Billing Code Hobbled Orthotics Sales, Co. Contends

By Keith Goldberg (April 13, 2012, 3:01 PM EDT) -- Foot orthotics manufacturer Walkwell International Laboratories Inc. sued a Medicare claims processor in Idaho federal court on Tuesday, claiming the processor improperly yanked an insurance code for Walkwell's custom-made ankle support brace, hurting the company's sales.

Walkwell says that Noridian Administrative Services' decision to remove the code for the company's Stepwell Custom Ankle Foot Orthotic violated the Administrative Procedures Act because it was both arbitrary and capricious. The suit also asserts a claim of tortious interference with prospective economic advantage.

In addition to the suit, Walkwell moved for a temporary restraining order that would restore the code, saying its removal has...

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