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Fire department warns new state rule will constrain ambulance charges
Summary
Kensington’s fire department reported a recent state action limiting ambulance charges to 3.25 times the Medicare rate for a transition year and requiring enrollment with private insurers; the department said it must join a cost-based rate study and that revenue could decline.
The Kensington fire department told the Selectboard it is monitoring a state-level change that restricts ambulance billing and may reduce local ambulance revenue.
An agency official said a recently passed senate measure caps the town’s allowable ambulance charge in the transition year at 3.25 times the Medicare rate and requires enrollment with private insurers. The department must participate in a cost-based rate study that state officials will use to set future allowable charges, the official said. "We can only charge 3.25 of the Medicare rate, and we have to enroll with all of the private insurance agents," the official said, adding that the change could depress revenue next year.
The official said the town’s current ALS (advanced life support) contract with a regional provider remains in place and that staff will seek clarity from partner agencies on subcontractor arrangements and billing flows. The Selectboard received the report as informational and asked the chief to continue monitoring impacts on local revenues and contracts.
No action was taken at the meeting; the board will follow up as staff learns how the new rules affect intermunicipal ALS arrangements.
