Mayor Adrian Fenty‘s contention that Medicaidand private insurers will fork over millions more dollars for higher ambulance fees was “bogus,” leaving D.C.’s 2009 budget with a gap more than $5 million wide, a D.C. Council member claims.
At-large Councilman Phil Mendelson, chairman of the public safety committee, said Friday that the $7.2 million generated from doubling the cost of an ambulance ride, revenue that was included in the approved 2009 spending plan, was based on an “overly simplistic” premise. The number is likely closer to $1.7 million, he said, citing new estimates from the Office of the Chief Financial Officer – leaving the budget with a $5.5 million shortfall.
“The real point is they don’t know,” Mendelson said of the Fenty administration. “There’s massive confusion.”
The District currently collects 40 percent of what it charges in ambulance fees, through insurance or otherwise. The mayor’s assumption, Mendelson said, was “if we’re collecting 40 percent now, we’ll get 40 percent of the increase.”
“As if there’s no limit to what insurance will pay,” he said. “Of course there is.”
At Fenty’s direction, the price of a basic ambulance ride was increased last month from $268 to $530. An advanced life-support ride was raised from $471 to $832, and the cost for the most serious transports was set at $953. Council members repealed the increases in the Budget Support Act, but directed the mayor to restructure the fees to generatethe same amount of new revenue.
“I have made it clear to the [chief financial officer] that this is a problem that the mayor’s got to fix,” said Mendelson, who will hold a hearing on the matter Friday.
Fire officials this month acknowledged privately that the ambulance fee increases will generate much less than first anticipated, due in large part to Medicare and Medicaid’s refusal to pick up the tab. The District will have to write off an estimated 46 percent of the extra revenue.
A Fenty spokeswoman said the $7.2 million figure was certified by Chief Financial Officer Natwar Gandhi‘s office before the budget’s passage.
“The current revenue projection is reasonable,” said Fenty’s budget chief, William Singer. “The Medical Assistance Administration has advised that Medicaid will reimburse emergency ambulance transportation at a higher rate, as long as the new rate does not exceed the actual cost of the service.”
