A federal appeals court ruled Wednesday that U.S. law closes a ceiling for Texas on air ambulance charges related to the treatment of injured workers, and does not agree with the Texas Supreme Court ruling in the matter.
In Air Evac EMS Inc. v. State of Texas, Department of Insurance, U.S. 5th Circuit Court of Appeals in New Orleans ruled that the U.S. Airline Deregulation Act, which prevents states from regulating airline prices, prevents state price caps for air ambulance compensation.
"We do not see this as a close conversation – the text of the ADA clearly governs this case," the court said in its decision. The Texas Workers & # 39; Compensation Act, which regulates prices that insurers must pay for health care services, including air ambulance fees, allows price caps.
Confirmed a West Texas District Court ruling, the Fifth Circuit Panel decided i.a. on Air Evac EMS is clearly an "air carrier" according to the text of the Airline Deregulation Act and therefore federal law should apply.
Air ambulance costs have escalated in recent years and several cases focusing on regulating suppliers' fees have been heard in state and federal courts. In June 2020, the Texas Supreme Court dismissed an airline's argument that the state could not regulate its charges. The US Supreme Court refused to appeal. Catalog