MEDICAL AIRLIFTER SUES TO BLOCK PRICE REGULATION IN TEXAS
March 14, 2016
Air ambulance company Air Evac EMS (Air Evac) has filed suit in Texas, accusing the state of illegally regulating transportation fees for patients who were injured at work in violation of the Airline Deregulation Act of 1978 (ADA). Specifically, Air Evac argued that fee caps imposed on air ambulance companies via the Texas Worker’s Compensation Program equated to fare regulation, which is prohibited under the ADA.
Air Evac specifically targeted the Texas Workers Compensation Act, due to its establishment of a fee schedule that sets maximum allowable reimbursements for health care providers received for medical services rendered to injured workers. Under this restrictive fee schedule, Air Evac has only been able to recover a small fraction of its charges in the last year for providing flights for dozens of patients who were injured at work.
Air Evac is seeking an injunction from the court preempting the State of Texas from using the Texas Workers Compensation Act to cap the price of air ambulance services. If that fails, Air Evac has asked the court to free air carriers from the portion of the same Texas law that prohibits health providers from billing patients for the balance of money owed for services. The case is due to be heard later this year.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).