Cost of Air Ambulances Skyrocket

Workers’ comp insurers are locked in a battle with the air ambulance industry over whether those bills are regulated by the workers’ compensation act. These disputes are pending nationally, in many jurisdictions. The air ambulance providers claim that their bills are not bound by or subject to state workers’ compensation fee guidelines on the basis the federal Airline Deregulation Act preempted state law. This issue has been making its way through courts across the country with various presentations and outcomes.

Now, a new study shows how much money is at risk, and how the stakes are getting higher. WC Insights has an analysis and a link to the full Government study.

The United States Government Accountability Office released their report on air ambulance rates around the country and found that their costs have significantly increased in just a few years. They recommend that they make pricing information available to consumers and health and insurance companies, since many people often have no choice but to employ their services but their high bills can catch people off guard after the fact.

The organization found that between 2010 and 2014, the median price charged by air ambulance companies doubled to $30,000 per ride.

In December 2016 we published an FOL Advisory discussing the current state of the Texas litigation, which has been denominated as Texas Mutual Ins. Co. v. PHI Air Medical, LLC, Cause No. D-1-GN-15-004940. In that case, a Texas state district judge, has agreed with carriers that air ambulance bills are subject to state regulation by the Texas Department of Insurance and the Division of Workers’ Compensation.