Senator Fred Madden

Madden Medical Transportation Bill Clears Assembly
Requires Health Insurers to cover Medical Transportation Services under Certain Circumstances

(Turnersville, NJ) The NJ Senate today passed S-439, legislation sponsored by Senator Fred Madden which will require health insurers to directly pay medical transportation service providers regardless of whether or not the service provider is under contract with the carrier.

"We want to ensure that if a covered person receives medical transportation services, the service is properly paid by the person's insurer in an appropriate and timely manner", said Madden (D-Gloucester/Camden). "Many people depend on the vital functions of companies providing medical transportation services and those companies should not end up at the mercy of the insurer. They should not have to worry the person they are transporting may have chosen a company that will not promptly pay for the services delivered."

Medical transportation services account for millions of dollars in costs to local municipalities across New Jersey. Many times insurance carriers do not reimburse the cost of ambulance or medical transportation services if the provider is not under contract with the insurance carrier. When EMS and ambulance squads are funded by taxpayer dollars, a lack of payment for services rendered can cause a significant financial problem for the governing body. In addition, private medical transportation providers should not be burdened with the unpaid cost of services provided to insured patients. This legislation ensures that payment for services rendered are directly paid to the services provider instead of the covered person.

The Legislation passed the Senate by a vote of 34 to 0. Similar legislation sponsored by Assemblymen Mayer and Moriarty has already cleared the Assembly, but the bill must go back for a vote with the amendments.The Fourth Legislative District includes the towns of Clementon, Laurel Springs, Lindenwold, Gloucester Township, Franklin Township, Glassboro, Monroe Township, Newfield, Pitman and Washington Township.