SENATE MEMORIAL 62

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Clemente Sanchez

A MEMORIAL

REQUESTING THE OFFICE OF SUPERINTENDENT OF INSURANCE, THE DEPARTMENT OF HEALTH, THE RISK MANAGEMENT DIVISION OF THE GENERAL SERVICES DEPARTMENT AND THE WORKERS' COMPENSATION ADMINISTRATION TO STUDY THE IMPACTS AND COSTS OF AIR AMBULANCE TRANSPORTS ON CONSUMERS, BENEFICIARIES AND PAYORS IN NEW MEXICO.

     WHEREAS, the federal Airline Deregulation Act of 1978 was enacted to encourage, develop and maintain an air ambulance system reliant upon fair and effective market forces as well as on actual and potential competition to provide needed air transportation services for urban areas, small communities and isolated areas; and

     WHEREAS, the federal Airline Deregulation Act of 1978 was also enacted to further efficiency, innovation, low prices and a variety and quality of air transportation services, while avoiding unreasonable industry concentration, excessive market domination, monopoly powers and other conditions that would tend to allow at least one air carrier to unreasonably increase prices, reduce services or exclude competition; and

     WHEREAS, generally, the federal government has authority and oversight concerning the economic and safety aspects of the industry such as matters related to prices, routes and services; and

     WHEREAS, under the federal Airline Deregulation Act of 1978, states are given the authority to regulate the medical aspects of air ambulances; and

     WHEREAS, since 1978, the federal aviation administration has issued minimal regulations related to the market competition, market concentration or rates of the air ambulance industry; and

     WHEREAS, since 2002, New Mexico has experienced considerable mergers and acquisitions in the air ambulance industry; and

     WHEREAS, since 2007, considerable annual increases in billed charges for facility-to-facility and site-to-facility air ambulance transports have occurred; and

     WHEREAS, industry expansion, consolidation, cost increases and trade practices may present adverse financial and legal risks to insurance consumers, beneficiaries and payors in New Mexico;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the office of superintendent of insurance be requested to convene an air ambulance study group made up of representatives of the department of health, the risk management division of the general services department and the workers' compensation administration to study the following issues related to air ambulance transport in New Mexico:

          A. the financial aspects of site-to-facility and facility-to-facility transports by air ambulance transport providers operating in New Mexico, including the types and costs of operations, charges for services provided, billing practices and reimbursement by payors;

          B. New Mexico and federal laws applicable to the operation of air ambulance transportation services in New Mexico; and

          C. mechanisms available to New Mexico to regulate financial aspects of air ambulance transport services to ensure cost-effective use of air ambulance transport services for site-to-facility and facility-to-facility transports and to assure consumer protection; and

     BE IT FURTHER RESOLVED that the air ambulance study group be requested to produce a report with findings, conclusions and recommendations on the impacts and costs of air ambulance transports on consumers, beneficiaries and payors in New Mexico; and

     BE IT FURTHER RESOLVED that the report be presented to the legislative finance committee by October 1, 2016; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the chair of the legislative finance committee, the superintendent of insurance, the secretary of health, the director of the risk management division of the general services department and the director of the workers' compensation administration.

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