Expiring subsidies for Medi-Cal patients threaten REACH and other air ambulance services
Air ambulance services that provide a critical lifeline to sick and injured people in remote areas of the North Coast are warning they could be forced to cut services sharply unless the Legislature replaces subsidies that are scheduled to expire at year’s end.
As many as one in four medical aircraft bases around California could be shuttered within 12 months if funding for Medi-Cal air transport patients is not included in the 2019-20 budget or extended through backup legislation pending in the state Senate, an industry representative warned last week.
The system cannot sustain itself without the subsides for Medi-Cal patients, who account for nearly 40% of the state’s medical air transports, said Christian Giller, president of the California Association of Air Medical Services. Currently, the transports are subsidized by a $4 fee assessed on most traffic tickets issued in California since 2010. The fee is set to expire at the end of the year, when, absent legislative action, the reimbursement rate will roll back to 1993 levels, minus a 10 percent reduction made in 2013, in the wake of the last recession.
North Bay legislators are scrambling to replace the funding in budget negotiations.
“We need this funding, and we need it now,” said Assemblyman Jim Wood, D-Healdsburg, who co-authored a contingency bill with state Sen. Bill Dodd, D-Napa, and lead author Tim Grayson, D-Concord, that would supply the funding if it’s not in provided in the budget.
Even with the subsidies, Medi-Cal reimbursements don’t cover the average $25,000 cost of a medical air transport, said Giller, who is also director of business development and government relations for REACH Air Medical Services, which was founded and headquartered in Sonoma County until the October 2017 firestorm, when its central offices were moved to Sacramento.
Thus the statewide system of about 70 emergency air ambulance aircraft will inevitably have to shrink, making medical air transports less available, Giller said.
“They’re very needed services and, unfortunately, there’s no other remedy for the government, for example, to come in and say, ‘OK, then we’ll stand up those bases when you lose them,’ “ Giller said. “So we’re going to do everything we can, but it’s going to be very challenging for the state of California.”
It’s still possible for the state Conference Committee on the Budget to put $16.9 million in next year’s general fund to help cover Medi-Cal air transports, as currently requested. But time is running out, and legislators already are behind schedule in their bid to get a spending plan to the governor in advance of next Saturday’s constitutional deadline.
As of Friday, the appropriation, requested for each of the next three years, was still not included in the proposed budget. Wood and five rural lawmakers have implored the budget committee chairs to reconsider the matter.
Supporters say air ambulance service is essential to the statewide emergency management system, both in terms of linking individual patients to critical care units, including specialty neonatal, burn, trauma and children’s centers, but also during large-scale emergencies.
During the Carr fire in Redding last year, for instance, medical aircraft were used to evacuate newborns and their mothers to UC Davis Medical Center in Sacramento. Air ambulances also transported injured firefighters and residents to regional burn centers, Giller said.