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Air Ambulance Companies and Lower Health Care Costs Act (Part 2)


We had previously discussed Lower Health Care Costs Act in some detail and how it affects air ambulance companies, primarily the larger ones. Here, we will highlight how it will affect the patients and where the act – in its present form – is headed, in some detail.

The Act, although is not specific to the air ambulance industry, will impact it hugely. The current effort has been to ensure that the end consumers or patients are not unnecessarily burdened with medical bill payments when they are covered by insurance already. This has been a problem in the health care industry for quite some time now.

Let’s Understand the Act with an Example

Imagine an instance where you, a comprehensive health insurance holder, are slated to undergo a surgery. You ensure that the hospital you choose is in your insurance network and so is your treating surgeon. However, unbeknownst to you, the anaesthesiologist turns out to be an expert who is out of your insurance network. The chances are that you will be compelled to foot the bill for the anaesthesiologist’s services. The Act attempts to avoid such situations. With the huge public support that the Act has garnered, it is highly likely that it will go through. However, it will have repercussions on air ambulance companies.

Federal Law will Impact Air Ambulance Companies

We have highlighted in the past that state governments lack the authority to guide terms to the air ambulance industry, owing to a federal legislation. After several failed attempts by states, the matter is now before the Federal Government. If passed, the Act will impact the industry hugely, as discussed in the part 1 of this series.

The Act is extremely comprehensive. In that, even if a state has never dealt with out-of-network air ambulance companies, a data analysis model that has been set up will aid in arriving at a median payment amount.

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