HB447: Government Rate-Setting That Raises Costs

HB447 replaces market negotiation with government-mandated ambulance rates that will drive up healthcare costs for Kentucky families, employers, and taxpayers:

  • Legislates Prices Instead of Negotiation
    • Ambulance company executives are pressuring the legislature to set their rates rather than negotiate
    • Eliminates market-based contracting for both in-network and out-of-network companies
  • Mandates Rates Up to 4X Medicare
    • Requires payment at a government-set local rate or up to 400% of Medicare
    • Applies regardless of network status or billed value
  • Drives Up Kentuckians’ Healthcare Costs
    • Estimated to increase consumer healthcare costs by more than $5 million annually
    • Projected costs of nearly $10 million per year to the state employee health plan, driving up costs for state, local, and municipal employees, their families, and all taxpayers
  • Imposes New Government Mandates
    • Requires coverage of all emergency ground ambulance services, including those provided by out-of-network companies
    • Automatically deems services medically necessary with no oversight
    • Mandates payment within 30 days and direct payment to out-of-network companies
  • Undermines Affordability
    • Inflates prices for services already being provided today
    • Shifts higher costs directly to employers, families, and taxpayers

Bottom Line

HB447 expands government rate-setting, increases healthcare costs, and removes flexibility—without improving services or outcomes.

We urge the Kentucky State House to oppose HB447.