In a significant move to protect patients from exorbitant surprise bills, California Governor Gavin Newsom signed a new law that prohibits ground ambulance operators from balance billing. The law, effective from January 1, 2023, addresses a crucial gap in existing legislation, providing relief to the nearly 14 million Californians enrolled in state-regulated commercial health plans.
The Disturbing Reality of Surprise Bills
Jennifer Reisz’s daughter, Megan, faced a traumatic incident last year when their family horse kicked her, resulting in serious injuries. Despite being alone, Megan’s Apple Watch detected the emergency and called 911. However, the relief of receiving prompt medical attention turned into distress when the Reisz family received a $2,400 bill from the ambulance company, highlighting the prevalent issue of surprise billing in emergency situations.
Ground Ambulance Rides: A Vulnerable Frontier
While federal and state laws already protected patients from balance billing for hospital care and air ambulance services, ground ambulance services remained a notable gap. Patients faced the grim reality of being billed for ambulance rides that were out of their control during emergencies. A December study revealed that nearly three-quarters of emergency ground ambulance rides in California resulted in out-of-network bills, with an average surprise bill of $1,209, the highest in the nation.
California’s New Protections
The new law in California extends crucial protections to patients by limiting the charges of non-network ambulance operators. Key provisions include:
- Caps on Patient Charges: Non-network ambulance operators are restricted from charging patients more than the amount they would pay for an in-network ambulance. This provision aims to shield patients from exorbitant bills during emergencies.
- Protection for Uninsured Patients: The law sets a cap on bills for uninsured individuals, ensuring they are not charged more than the Medi-Cal or Medicare rate, whichever is greater. This provision safeguards vulnerable populations from financial exploitation.
- Credit Rating and Legal Action Moratorium: Ambulance operators and debt collectors are prohibited from reporting patients to credit rating agencies or taking legal action against them for at least 12 months after the initial bill. This provision provides a grace period for patients to navigate billing issues without immediate financial repercussions.
Addressing the Root of the Issue
The legislation recognizes the fundamental issue that patients lack control over which ambulance company responds during emergencies. The inability to choose an in-network provider during critical moments has led to widespread instances of surprise billing.
A Beacon of Relief for Californians
The new law is expected to bring substantial relief to Californians, saving an estimated average of nearly $1,100 per emergency ambulance ride and over $800 per nonemergency ride in the first year. With nearly three-quarters of emergency ground ambulance rides leading to out-of-network bills, the law provides a lifeline for patients who previously lived in fear of the financial consequences of calling for an ambulance during emergencies.
Looking Ahead: Federal Efforts and Accountability
While California has taken a crucial step in addressing ground ambulance billing, efforts at the federal level are also underway. An advisory committee established under the No Surprises Act is actively working on proposals to address the issue nationally. The California law sets a precedent for protecting patients in emergencies, and the federal committee’s recommendations may further strengthen these protections.
As patients gain peace of mind, the legislation introduces accountability measures, including public reporting of ambulance rates. If rates were to escalate, built-in mechanisms would trigger legislative or local action to maintain a balance between fair compensation for ambulance services and affordable healthcare for patients.
Empowering Patients to Navigate Billing Challenges
The law’s impact goes beyond immediate savings; it empowers patients to challenge billing errors and navigate the complex healthcare billing landscape. With provisions encouraging communication between patients, ambulance companies, and health plans, individuals are equipped to dispute bills that deviate from the new regulations.
In a healthcare landscape fraught with financial uncertainties, California’s new law stands as a beacon of relief and protection for patients facing emergencies. As the state sets an example, the nation watches, with the hope that similar protections will become a standard nationwide.