AB 1104 is expected to solidify financial support for Medi-Cal beneficiaries requiring emergency air services. It mandates the Department of Health Care Services to develop a supplemental payment program to increase Medi-Cal reimbursement rates for emergency medical air transportation, thereby addressing a gap where air ambulances previously did not qualify for increased reimbursement compared to other emergency medical services. Funding for the program relies on carving out federal approvals and state appropriations, significantly impacting the operational capacity of air ambulance services.
Assembly Bill 1104, known as the Emergency Medical Air Transportation Act, aims to improve funding mechanisms for air ambulance services in California. The bill amends certain sections of the Government Code and the Welfare and Institutions Code, extending the collection of penalties associated with Vehicle Code violations to support the Emergency Medical Air Transportation and Children’s Coverage Fund. Specifically, it imposes a continued $4 penalty on violations, which helps ensure funding for emergency medical air transportation services and children’s healthcare coverage until at least December 31, 2023.
The discussion surrounding AB 1104 has generally been favorable, especially among advocates for healthcare access and emergency services. Supporters argue that the bill is a necessary step toward ensuring that all Californians, regardless of socioeconomic status, have access to critical emergency medical services. However, there are concerns raised about the potential over-reliance on penalty assessments as a funding source, which stakeholders highlight as a regressive financing mechanism that could disproportionately affect low-income individuals.
Notably, the bill draws issues around the funding model—while it aims to curtail reliance on regressive penalty assessments, questions remain about sustainable funding for the Medi-Cal program long-term. The bill’s urgency clause indicates an immediate need for action, but stakeholders are wary about future appropriations and regulatory hurdles, particularly if federal approvals do not materialize. As such, the potential for litigation or budgetary challenges poses a significant concern regarding the timely implementation of the new reimbursement framework.