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Air Ambulances With Sky-High Charges.
Ge Bai1, Arjun Chanmugam2, Valerie Y Suslow3
1Ge Bai ( gbai@jhu.edu ) is an associate professor of accounting at the Johns Hopkins Carey Business School and an associate professor of health policy and management at the Johns Hopkins Bloomberg School of Public Health, in Baltimore, Maryland.
Health Affairs (Project Hope)
|July 2, 2019
Summary
Air ambulance costs significantly exceed Medicare payments, with charges 4.1-9.5 times higher in 2016. This disparity widened between 2012-16, showing substantial price variations nationwide.
Area of Science:
- Health Economics
- Healthcare Policy
- Medical Services Research
Background:
- Air ambulance services are a critical component of emergency medical care.
- Understanding the financial aspects of air medical transport is essential for policy and patient affordability.
Purpose of the Study:
- To analyze the trends and disparities in air ambulance charges compared to Medicare reimbursement rates.
- To identify the extent of price variation among air ambulance providers across the United States.
Main Methods:
- Analysis of air ambulance service charges from 2012 to 2016.
- Comparison of billed charges against Medicare payment rates for the same services.
- Calculation of median charge ratios and assessment of changes over time.
Main Results:
- In 2016, air ambulance charges were 4.1 to 9.5 times higher than Medicare payments.
- Median charge ratios increased by 46-61% between 2012 and 2016.
- Significant geographical variations in charges were observed, with major providers often having the highest rates.
Conclusions:
- Air ambulance pricing is substantially higher than Medicare reimbursement, indicating a significant affordability challenge.
- The increasing trend in charge ratios suggests a growing financial burden on patients and the healthcare system.
- Policy interventions may be needed to address price gouging and ensure equitable access to air medical transport.
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