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Air Ambulance Cost Control – What Does the Failed Attempt by Wyoming Mean?


Wyoming was leading the way when it came to regulating the cost of air ambulance services. Had the state been successful in its attempt, it was something that other states too would have emulated, without a doubt. However, the CMS has recently rejected the proposal. What does it mean for the air ambulance industry and its consumers? There are several pros and cons to this. However, there is no denying the fact that it is a major setback for the state as well as the insurance industry that backed it openly. It is indeed a small victory for the air ambulance industry.

The Cost Implications on Air Ambulance Industry

The proposal by Wyoming had tried to regulate the prices charged by the medical flight industry. Had it been successful, a common price would have been brought into effect which the insurance industry would reimburse. To make this possible, only a few players would have been selected by the state through a bidding system. In effect, several air ambulance services providers would have likely gone out of business instantly. It is an industry that is already reeling under intense competition and high cost. These have been the primary reasons why the services have been getting expensive by the day. Of course, the refusal of the insurance industry to relook their reimbursement rates has added to the woes of air ambulance service providers.

What does it Mean for Customers?

From a customer standpoint, there is not much of a change. The high cost of air ambulance services will continue to prevail. The only way forward now looks like a relook into the insurance reimbursement rates. If this is not done, the balance billing problem will continue to haunt the consumers. It seems that the ball is now in the court of the insurance industry.

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