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| ESB approves moving ahead with fire billing |
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12/24/2008
By Kirby Haskins
Advocate staff writer
The Montgomery County Emergency Services Board agreed to initiate a billing policy within the local fire district during the board’s monthly meeting last week.
Following a recommendation from Montgomery County Fire-EMS Chief Larry Potter Dec. 16, ESB members approved the implementation of a policy that would bill insurance companies for fire protection services following the department’s response to residential or business fires, or for services rendered following automobile accidents. Under the policy, no local residents will be billed.
In his presentation, Potter told the board that a fire billing policy is a way for the department to seek alternative revenue from sources that use the fire division’s services and equipment.
“This is an avenue to possibly get some more revenue that doesn’t cost taxpayers, the citizens here anything,” Potter said.
Potter told board members that insurance companies already have pay schedules within their homeowner, commercial and automobile policies to pay for fire services. With implementation of a billing service, he added, the department would only seek money set aside in those insurance policies and no residents would be billed.
“It’s becoming more and more predominant now across the country and more so here in Kentucky,” Potter said. “I think it’s time we consider this, look at it, and go ahead and start trying to get some revenue out of it. ... If insurance companies have it in their policies already, we might as well take advantage of it.”
The ESB first discussed the possibility of starting a fire billing system in 2006, but no formal action was ever taken on the matter.
Board chair Starky Ray and board member Bryant Shumate noted during the Dec. 16 meeting that local insurance representatives came in to discuss the matter at that time.
As the Advocate reported then, those representatives said stated that a fire billing policy would have minimal effect, if any, on local taxpayers, and that most insurance companies have been participating in the fire billing practice for years.
Fire officials would have to meet with MCA—the company that currently handles billing services for the EMS (ambulance) division—to develop an official fee schedule for the new fire billing system, Potter said.
“Right now we want to keep it simple and go by the recommendation of MCA,” Potter said.
Ray acknowledged the need to find alternative revenue streams for the fire district.
“Things are not getting any cheaper,” he said, “and we’ve got to look at the future and ways to try and come up with some money.”
Potter told the board that while a fire billing policy will generate revenue, but not necessarily in great quantities.
“This is not going to be a tremendous amount of money that we will be able to get,” Potter explained. “But it will gives us hope for some additional revenue to be able offset some of the costs we have.”
A motion to approve Potter’s recommendation was made by Shumate and seconded by Wesley Delk. The motion passed without opposition. Board member Roger Minnich was absent from the meeting.
Ray asked that the board be allowed to approve the fee schedule as well, when one is completed. Potter agreed to present a fee schedule before the board in January.
For additional news on the Dec. 16 meeting, see the story above.
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