HB 2910 Creates & Increases Fees on Emergency Medical Service Providers

Signed into Law by Gov Brown on 07-27-21
Status (overview) of bill:https://olis.oregonlegislature.gov/liz/2021R1/Measures/Overview/HB2910

This bill authorizes Oregon Health Authority to seek federal approval to assess fee on emergency medical services providers and use fee, interest, penalties assessed on providers and associated federal financial participation less any costs incurred by authority to administer program to reimburse emergency medical services providers for costs of emergency medical services transports. Increases fees for licenses for ambulance services and ambulances. Becomes operative January 1, 2022. Declares emergency, effective on passage.

Fiscal Responsibility
The Emergency Medical Services Fund is established to provide grants to innovative ambulance programs, fund reimbursement for emergency medical services transports – redistribution through assessing fees. OHA is required to establish the reimbursement to be paid to an EMS provider for an EMS transport in an amount that is equal to the federal financial participation received by OHA for the cost of the services provided. An EMS provider must use a portion of the funds to increase wages and benefits for employees. The reimbursement also applies to reimbursement by coordinated care organizations (CCO). OHA notes that the bill appears to conflict with federal Medicaid reimbursement limitations. In particular, states cannot make payments for Medicaid services with only federal revenue, which appears to conflict with the measure’s requirement for reimbursement to equal the federal financial participation received for the cost of services provided.

Limited Government
HB 2910A states that the Oregon Health Authority (OHA) may request approval from the Centers for Medicare and Medicaid Services to administer an assessment and reimbursement program for nonfederal or nonpublic emergency medical services (EMS) providers.

Free Markets
Fee assessed on nonfederal or nonpublic emergency medical services providers equal to the lesser of the amount permitted by federal law and five percent of the projected total gross receipts for the following 12-month period, divided by the projected number of emergency medical services transports in the same 12-month period. “Insurance” is always calculated on experience, this requires a crystal ball to determine projections. Reimbursement received by an emergency medical services provider shall use a portion of the funds to increase wages and benefits for employees, driving up cost of service.

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