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Selectmen approve ambulance contract changes as state law will require billing insurers
Summary
Selectmen voted to approve the updated multi‑town ambulance contract; board members discussed a new state law effective Jan. 1 that requires ambulance providers to bill insurers, and noted the change could reduce out‑of‑pocket surprise bills but may lower municipal ambulance revenue projections.
The Board of Selectmen approved changes to a multi‑town ambulance contract on Oct. 20 after an extended discussion about a pending state law that will require ambulance providers to bill health insurers.
Selectmen said the change in law — effective Jan. 1 (as discussed at the ambulance meeting) — should reduce surprise out‑of‑pocket bills for residents because providers will negotiate contracts with insurers or use state‑approved rates. Presenters said negotiated rates are likely to be lower than current private billing rates and may be somewhere near three times Medicaid rates in some negotiations, though providers have warned they could still lose money on certain calls.
Officials said the contract includes a built‑in 3% annual increase. The board heard projections that some agencies could see decreased revenue because of the new billing rules; one estimate referenced during the meeting suggested a projected annual reduction in ambulance revenue on the order of tens of thousands of dollars across the service area. Despite uncertainty about net revenue, selectmen concluded the change aligns with consumer protection goals and approved the contract adjustment.
The motion to approve the contract change carried on roll call.
