This is our 'billing system' in a nutshell. And let me apologize in advance for the lunacy I am about to describe as though it were an actual system for receiving a fee for service. We are a small rural agency. We are a fire protection district and a county tax district. This means that we put a fee for fire protection on the property taxes of those who live within our 'district' as defined by the county regulations. As a 'junior taxing district' we do not assess the fees or taxes ourselves. We receive a payment from the County Tax Assessor. This means that the service we provide, we are only legally able to provide for those who reside, and pay taxes to us. We have mutual aid agreements with neighboring districts. But for the district that has ALS, the exchange is 'not mutual'. This means that if they need our tender on a big fire, they will provide us with a tender too. If we need BLS, they will provide that. But, if we need ALS from their district, a service that we do not provide, they were legally obligated by the State Auditor to charge us for the service.
This caused a virtual hemorrhage of money out of our district. Every time we requested a paramedic for evaluation of our patient, the district received a bill for about $900.
Our charter did not allow us to charge the tax payers for a service they were already 'paying for' through their taxes. Our board of directors also did not want the expense of becoming an 'employer' with all the federal and state obligations that entailed. They felt that the economic gain of billing would be offset by the other expenses. Step in a ... drumrolll please.... contracted agency for third party payer. This is an elaborate system where an outside agency for a percentage fee, does all of our billing. But wait.. doesn't our charter disallow billing? Yes.. but only directly to the patient.
You see.. the insurance companies bill our taxpayers for medical insurance. This insurance sometimes has coverage for ambulance transport. So, we do not bill the patient. We bill the patient's insurance company. Now, in those cases where the patient is uninsured, there is no billing done. In those cases where the patient is medicare or medicaid, the billing is handled the same as an insurance company. The insured never sees the bill. Its all handled by the third party payer contractor and the district receives a check of the fees charged less their percentage.
I have a few issues with this. First off, if the patient is uninsured and the ALS agency is used, the district still gets the bill. They figure that this is offset by those fees received by those who have insurance. So, basically, the insurance company is picking up the slack for those who are uninsured. From what I know of insurance companies they are not going to continue to do this forever without passing that cost on to the insured patients in the form of higher premiums. Which will drive up the cost of providing care, which will make it even harder for those without insurance to afford it.
The other issue is that state law disallows providing a service to one taxpayer at a higher or lower rate than another. If we all pay for water, power, sewer whatever, we all have to pay the same amount based on the service provided. In this case, everyone in our district pays for service, but those of us with insurance are paying more. Not so, says the 3rd party payer contractor.... we are not paying at all.. it's merely our insurance companies!
With an area of a bit over 50sq miles and roughly 1500 people in that area, we are not going to have ALS anytime soon, or even paid EMS. The nearest city system, where my husband works as a career ff/emt-p, doesn't even fully fund its ALS. They augment their personnel with volly ff/emt's instead of adequately funding their EMS.
I have to wonder what happened to "Gee folks.. if we all paid a little bit, we could have an ambulance and hire some folks to provide EMS" and turned it into ... "We have a highly paid administrative infrastructure which allows us to fully manage the EMS system within the fiscal restraints of these uncertain economic times."
Part of the solution definitely needs to be educating the public on what we do and how the system works. But fighting that kind of apathy is a bit like tilting at windmills. It's tough to tell the volly EMT's that the system really needs professionals, and they can either give up their jobs and come work for $9 an hour (the going rate for an EMT at the local private agency) or they will not be able to put lights in the grill of their truck and walk around in a Fire Department T-shirt and have a radio on their hip.
Like you said so well Rid... it's a dilemna!