CLEVELAND — Air Evac EMS, one of the largest air ambulance services in the nation, is suing Medical Mutual of Ohio for over $3.5 million in unpaid bills.
Cleveland.com reported Air Evac is accusing Medical Mutual of scheming to “systematically and unilaterally underpay” the air ambulance company for its services. The lawsuit accused Medical Mutual of unilaterally taking discounts on Air Evac charges and said the insurance company failed to adequately pay for 291 claims in the last two years.
Lawyers for Medical Mutual filed a countersuit arguing that there is no contract between Air Evac and Medical Mutual and that they never agreed to pay the “exorbitant” fees.
The lawsuit is the latest battle in a broader fight regarding the cost of air ambulance services and who should be required to foot the bill. The confusion over how air ambulances should be paid for has fueled debate across the country.
Air Evac’s average charge for transportation in 2014 was above $20,000 per ride. In the complaint, the company offered an explanation for the high cost, saying it spends about $3 million for each helicopter and another $500,000 to outfit each one with medical equipment. They also must pay to maintain the aircrafts, provide pilots, medical personnel and absorb the costs of patients without insurance.
“As a result of this cost structure, the rates charged for air ambulances to respond to medical emergencies are high,” the lawsuit said.
In addition to refusing to pay the $3.5 million bill, Medical Mutual is also seeking to recoup fees already paid to the company.