Ambulance reimbursement rates made whole

By Anthony Hennen | The Center Square

HARRISBURG, PA — Emergency service agencies across Pennsylvania have warned of funding shortfalls and labor shortages, but a recently passed bill will help ease a fraction of the pain.

House Bill 1351, signed into law this week as Act 15, will require Medicaid to reimburse EMS agencies for every mile an ambulance travels with a patient. Previously, no payment would be made for the first 20 miles of travel.

Passed by the House in June, the bill aims to help EMS companies steady their financial footing — a tall order.

Though local governments are required to provide EMS services by state law, they are not required to fund it. The result is companies unable to recover the cost of running an ambulance in an emergency and low wages for paramedics and other workers.

Rural areas especially feel the financial burden. Some agencies have seen their required coverage area expand without extra funding to compensate for it. No call — no matter how minor the medical concern — can be denied.

“Emergency service providers are reimbursed for mileage, but the rates at which they are compensated are significantly insufficient for rural companies which are forced to travel greater distances,” Rep. Jim Struzzi, R-Indiana, said in a statement.

The problem is not new, but has lingered for years, whether it be free-riding townships or problems recruiting workers.

When EMS agencies fold, the financial burden they leave behind can be significant. Jeannette EMS, east of Pittsburgh, filed for bankruptcy this year and leaves behind $850,000 in unpaid debts.