SHELBURNE, Vt. (WCAX) – Are town EMS providers paying too much back to the state in taxes? That’s a question now in front of Vermont lawmakers. Since 2018, EMS agencies have been required to pay what’s called an ambulance agency assessment fee out of their annual revenue. Now, some departments want to see that tax repealed.
Shelburne EMS officials say they respond to more than 1,600 calls for service every year. On each one of those calls where a person is transported to the hospital, insurance companies reimburse the department for service. But a portion of that revenue is paid back to the state.
“When we aggregate the figures, we’re looking at over $100,000 over the last six years,” said Shelburne Rescue Chief Andrew Kehl.
All ambulance services in the state are currently obligated to pay back 3.3% of their total revenue, which is then used by Vermont’s Legislature to lobby for a higher reimbursement from the feds through Medicare and Medicaid.
“Medicare and Medicaid is usually about 70 percent of your transports, and that’s a very important part of your income, and we always ask the Legislature if they can please make sure we’re at least getting some kind of parody for what we’re being paid for those patients,” said Jim Finger with the Vermont Ambulance Association.
Shelburne Rescue last year paid back more than $15,000 through the assessment fee. Kehl is among those now asking the Legislature to repeal the fee. He says the money spent in taxes could be better used elsewhere for things like equipment and employee pay. “Right now we are contending with the cost of inflation, with that not being able to use that $15,000 to help offset costs in other areas, ultimately means we have to ask for a larger budget from the town,” he said.
Vermont lawmakers say it’s worth a conversation this session but that there is not a simple fix to the issue. “What everyone needs to understand is — the provider tax overall is paid by a number of providers across the state and when we change one, we have to look at all of them together,” said Sen. Ginny Lyons, D-Chittenden County.
Lyons also says it’s important to look at what neighboring states are doing. She says the results of an in-depth look at the statewide EMS system are expected back soon.