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FRANKFORT— The likelihood of needing an air ambulance is rare. However, many Kentuckians are taking the cost of that service into consideration.
Thousands of Kentuckians have air ambulance membership subscriptions to pay any remaining costs that health insurance may not cover. During today’s Interim Joint Committee on Banking and Insurance meeting, Rep. Deanna Frazier, R-Richmond, shared how she believes those membership subscriptions need more oversight.
“These memberships are products that transfer an unknown amount of risk to the policy holder to the air ambulance company in exchange for a premium payment,” Frazier said. “Why aren’t these policies regulated as insurance?”
Frazier added that she does not seek to ban air ambulance membership subscriptions. Instead, she wants to ensure consumer protection.
“It’s time that we take a hard look at these policies and provide consumers of Kentucky with needed protections from predatory policies and marketing tactics,” Frazier said.
Frazier also questioned whether or not air ambulance membership subscriptions will be needed once the federal No Surprises Act goes into effect on Jan. 1. This federal law will prohibit surprise medical bills for patients who receive emergency care from out-of-network providers at in-network facilities. Patients will only be responsible for paying their co-pays and deductibles.
Chris Brady, general counsel at Air Methods Corporation, an air ambulance company, testified alongside Frazier. Air Methods does not offer air ambulance membership subscriptions. Instead, Brady said the company works with insurance companies to make sure its services are covered as an in-network service.
Brady testified that Air Methods would like to see state regulation of air ambulance membership subscriptions as a form of supplemental insurance.
Representatives of Global Medical Response’s Air MedCare Network and Air Evac Lifeteam testified against state regulation of the services.
Jason Monday, national director of field sales for Air MedCare Network, said the subscriptions his company and other Global Medical Response (GMR) companies offer are not the same as supplemental insurance.
Monday said GMR has contracts with a several insurance companies, including Anthem Blue Cross Blue Shield, where services are considered in-network and more than 80% of its services are covered by certain insurance companies. For those with a GMR subscription, the remaining balance is paid in full.
Monday also said existing laws and court cases already establish air ambulance subscriptions as distinct from insurance.
During discussion, Rep. Tom Smith, R-Corbin, said his constituents are happy with their air ambulance membership subscriptions.
“I can’t see where we’re going to benefit as legislators to bring oversight to the problem that doesn’t exist,” Smith said, adding he understands that those in favor of oversight are arguing there is a problem and he’s willing to listen.
As of this afternoon, no lawmakers have pre-filed any air ambulance-related bills for the 2022 regular session. Lawmakers cannot act on any proposed legislation until the legislative session begins on Jan. 4.