Ohio air ambulance company sues Medical Mutual for $3.5M

Air Evac Lifeteam has sued Medical Mutual of Ohio, claiming the payer owes $3.5 million in unpaid bills for its air ambulance services, reports The Plain Dealer.

In its complaint, filed in CuyahogaCounty late last year, Air Evac has accused the insurer of engaging in a scheme to "systematically and unilaterally underpay" the company for its air ambulance and EMS services, according to the article.

The suit alleges Medical Mutual failed to make adequate payment on 291 claims within the past two years, amounting to $3.5 million in unpaid fees.

This latest lawsuit speaks to a broader reimbursement battle currently raging between payers and air ambulance companies in communities across the country. Some health plans, appalled by air transport bills often ranging more than $20,000, have refused to meet company reimbursement demands. Air ambulance companies have vehemently defended their reimbursement rates, citing high costs for both equipment maintenance and personnel.

Consequentially, some patients caught in the financial crosshairs have been balance billed tens of thousands of dollars in outstanding fees.

Medical Mutual has filed a countersuit in U.S. district court, arguing the payer was never under contractual obligation to pay Air Evac's fees. Furthermore, under the countersuit Medical Mutual is seeking to recoup fees it already paid to Air Evac, reports The Plain Dealer.

Air Evac Lifeteam is one of the largest independently owned air ambulance services currently in operation in the U.S., with more than 125 bases and 2,000 employees across the country, according to the article.

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