News Photo by Steve Schulwitz Alpena firefighters Doug Keogh, left, and Ken Piper inventory and test medical equipment while at work on Tuesday. The Alpena Fire Department may raise its rate on ambulance transfers in the coming months.

ALPENA — The Alpena Fire Department may soon raise its fees for those who need emergency assistance and transfer to the hospital.

A new $250 fee could be initiated for people who are examined and assessed by firefighters and EMT, but decline to be transported.

Fire officials say the move is needed because the city currently undercharges third party insurers like Medicare, Medicaid and Blue Cross, which have an allowable fee schedule lower than what the city charges them.

The cost of a basic transfer will climb from $498.75 to $525, while advanced life support transfers go from $633.70 to $650. Patients in need of mobile intensive care treatment will pay $1,000, up from $972. The mileage rate will also increase from $14.50 to $15.

Events that need an ambulance on standby will pay $125 compared to $100 they do now.

Not adjusting the rates and continuing to under-bill insurance agencies, essentially uses tax money to subsidize commercial insurers’ profits and leaves the department with less revenue to operate with, Fire Chief Rob Edmonds said.

The changes in the fee schedule need to be approved by the Alpena County Board of Commissioners before they’re implemented. Edmonds said those changes could be approved around July 1.

For people who don’t have insurance, Edmonds said the billing company the city contracts with will work with them to come up with payment options, especially those who are low income.

“The billing company has directives to work with clients to make sure they have the ability to help people pay their bills,” he said. “If someone needs a payment plan we can accommodate that.”

Edmonds said the department has a 80% collection rate in bills and a high percentage of those payments are from insurance companies.

The new Treat No-Transport charge will impact people who are involved in car crashes or other minor emergencies.

Once examined, if a person refuses to go to the hospital, a $250 fee will be applied to their bill. Edmonds said such cases are often covered by insurance companies.

Last year, the department had 777 treat and no transfer responses and 141 public assist calls, which would have led to nearly $230,000 in additional revenue.

Edmonds said an example of a public assist call is someone who has fallen and can’t get up and medical first responders respond to help.

The county board must approve the rate hike because it has a contract with the city for ambulance response county-wide. The money the city receives from the county for ambulance coverage comes from a 1.5-mill property tax. Property owners who own a $100,000 home pay about $75 per year.

The millage expires at the end of next year.

Edmonds said raising rates and charging for non-transport runs will allow for the department to collect a fairer amount from insurance companies, which will bolster the bottom line and offset rising costs. He said that also means the city has to use less of the millage money.