AMGH is a large air ambulance company that serves the state of North Dakota. Hundreds of state residents rely on the organization to reach appropriate medical care on time. With the insurance industry, sometimes, not honoring claims due to reasons that are technical and legal, air ambulance companies tend to roll out membership plans to insulate customers from the cost burden. In essence, these memberships ensure that the balance billing menace does not affect them. Any amount not covered by insurance companies is absorbed by the air ambulance company itself. It is a win-win situation for all parties involved.
Why is the Air Ambulance Company in Trouble?
The state of North Dakota prohibits any air ambulance company to issue memberships. The practice is considered predatory, encouraging people to choose one service provider over another. What the government fails to see is the fact that memberships, which are not expensive at all, offer great financial security to individuals and families. Mot memberships cost only a couple of hundred dollars a year.
The state had already warned AMGH against the practice of soliciting memberships. However, the company had gone about its way questioning the legality of the regulation and also stating that it is pending federal litigation. However, now the air ambulance company has been issued a ‘cease-and-desist’ by North Dakota.
How Do Air Ambulance Companies Make Memberships Work?
Air ambulance companies encourage local communities and individuals to come together and subscribe to their memberships. With huge groups of people opting for such memberships, the amount raised is quite sizeable. It helps the medical flight companies to offset the cost burden significantly. For communities, especially the rural ones, it is an assurance that they can avail medical care on time without worrying about huge bills in the form of balance billing.
