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Newcastle EMS to seek ordinance raising commercial billing rates under new state law
Summary
The EMS chief told the council a January ordinance will raise billing rates for commercial insurers—enabled by a state House bill allowing billing up to 400% of Indiana Medicare allowable—projecting roughly $253,000 in recoverable revenue for the first three quarters.
The Newcastle EMS chief told the Common Council on Dec. 15 that staff will bring an ordinance in January to adjust EMS billing rates for commercial insurers, taking advantage of a recently passed state House bill.
"House bill was passed that allows us to bill 400% of the Indiana Medicare allowable rate to commercial insurance companies," the chief said. The chief said the billing change is expected to increase revenue; the billing company's projection for the first three quarters of this year was $253,000.
The chief and council members emphasized that the change would not increase charges for Newcastle residents or Henry County residents because the city does not bill its residents directly. "Not an increase for our citizens," one councilmember said during the discussion; the chief reiterated that the adjustment targets commercial insurance payments and that the city does not practice balance-billing residents.
Council members did not vote on an ordinance during the meeting; the chief said the formal ordinance should be ready for council review in January.
