TRENTON, N.J., October 29 – Legislation to change the way first aid squads and ambulance services are paid in emergency health and accident matters has been released for a future floor vote of the Senate.

The bill, S329, sponsored by Senator Fred Madden (D-Camden County) would require health insurance carriers to pay the medical transport provider for the emergency service instead of the present system, where they could pay the patient under the assignment of benefits provision of an insurance contract.

The measure is supported by the Medical Transportation Association of New Jersey, as well as the Emergency Service Providers of Southern New Jersey. It is opposed by the State Association of Health Plans, the New Jersey Business and Industry Association, and Oxford Health Care.

The health insurers contend that mandating direct payment to the ambulance or first aid squads would raise the costs of health insurance in emergency cases that now is negotiated.

The ambulance and first aid squads contend they are forced to seek out the patient for payment under the present system.

Currently, emergency medical transportation providers serve patients regardless of their ability to pay. The patients however are allowed to execute assignment of benefit forms that are supposed to allow collection from the insurance company. The alleged problem is that the transportation providers find that insurance carriers will not honor the assignment of benefit if it is from an out-of-network provider. The medical transportation providers report they are forced to collect the fee from the patient.

Conversely the anti-assignment clauses in the insurance carriers contracts are meant to encourage provider participation in health benefits plan networks to lower the overall cost, according to the opponents of the measure.

The bill would apply only to emergency cases. It was released for future Senate vote by the Senate Commerce Committee.