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2 new Ind. laws change how insurers, Medicaid pay EMS agencies

Private insurers will have to negotiate prices directly with ambulance service providers, and Medicaid reimbursement rates will go up

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In March, Indiana Gov. Eric Holcomb signed two bills dealing with how insurance reimburses ambulance services for the costs involved with transporting a patient.

Photo/Darron Cummings/Associated Press

By Leila Merrill

INDIANAPOLIS, Ind. — Two bills signed into law in March change how insurance companies and Medicaid reimburse EMS agencies, Wish-TV reported.

One piece of legislation requires private insurers to negotiate prices directly with ambulance service providers instead of setting a rate of 20%.

The other law that Indiana Gov. Eric Holcomb signed raises Medicaid reimbursement rates for the first time in three decades.

Russell Ferrell, CEO of Terre Haute-based Trans-Care Ambulance, said the new laws will help EMS agencies stay in business and may reduce bills for patients.

“Hopefully, moving forward, we’ll be able to get better conditions physically for us, it provides better care for patients down the line,” he said.

House Bill 1112, which affects Medicaid rates, takes effect on July 1, 2023.

Air ambulances are not affected by the new laws.

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