by Laura Freeman
Reporter
Hudson -- EMS ambulance rates will increase by 60 percent or more, depending on the level of care provided, for the first time since 2004.
However, according to the city, all residents and anyone who works in Hudson will only be charged what their insurance providers cover and will have no out-of-pocket costs.
Council voted 6-1 March 3 to increase Hudson EMS ambulance transportation fees.
EMS Director Bruce Graham said the city has been underbilling its services. The higher rates will be closer to the industry's typical rates, and the increased revenue would cover the rising costs of medical supplies, he said.
The increased rates are projected to increase revenue the city collects from fees but is dependent on how many Medicare patients are serviced. Medicare pays a flat rate and if the percentage is more than the current 43 percent, revenue decreases for the city.
Ambulance revenue was $454,870 in 2008, projected to be $462,071 in 2009 and budgeted for $483,000 in 2010. Graham said the rate increase should achieve $480,000 in 2010.
Council member Kristina Roegner voted against the rate increase.
"The higher charges will translate into higher premiums," Roegner said. "I don't see the need for higher charges."
Council member George Roth said the increased rates will not translate into higher premiums.
"It should not affect citizens," Roth said.
Graham said premiums go up for healthy people as well as sick people. City employees have seen health insurance rates go up whether they use the services or not.
"Insurance companies have budgeted more for services," Graham said. "We are supplementing the insurance companies if we don't raise rates."
Other members of Council also disagreed with Roegner.
Council member Hal DeSaussure said insurance has a usual customer rate for services.
"They have allocated money more than we charge," DeSaussure said. "No one else has kept the same rates as 2004. We need to match the available money allocated by the industry. They expect to pay more than Hudson is charging."
Council member William Wooldredge said he represented the citizens of Hudson.
"If you don't raise the rates, you lose revenue for the city," he said.
Projected collections from transportation fees in 2009 are $434,000. With rate increases, projected collections from transportation fees for 2010 are $501,000 to $552,000, depending on the types of calls received, according to data provided by the city.
Graham said EMS averages a little more than 1,000 transports per year.
Hudson EMS receives 60 percent of its funding from city income taxes. The remaining 40 percent is funded by service and transportation fees.
The 2004 rate for advanced life support was $425. That will increase by 65 percent-88 percent, depending on the level of care, to $700-$800.
The 2004 rate for basic life support was $375. That will increase by 60 percent to $600.
A fourth level of care in the city's new cost structure will charge $200 for advanced life support assessment/treatment without transport will be $200.
Graham said an example would be treating someone with diabetes with insulin. They would not need to be taken to the hospital but EMS needs reimbursed for its medical supplies.
The mileage rate to a medical facility would increase from $7 to $12, Graham said.
E-mail: lfreeman@recordpub.com
Phone: 330-688-0088 ext. 3150