Relates to private air ambulance service insurance exemptions

BILL NUMBER:S4712E

Title of bill

An act to amend the insurance law, in relation to air ambulance subscription services; and providing for the repeal of such provisions upon the expiration thereof

Purpose

To allow private air ambulance services to offer membership subscriptions.

Summary

Section 1 amends section 1108 of the insurance law by adding a new subsection (k) in order that an air ambulance service which complies with section 2 of this bill, be added to the list of exemptions for insurance licensure.

Section 2 adds a new section 1124 to the insurance law to set parameters for air ambulance service subscription certificates.

Section 3 provides the enacting clause.

Justification

In addition to the unique beauty New York State's broad and diverse landscape provides, it also creates some vast rural areas that are difficult to access. Recreational enthusiasts and residents in our State's most rural areas enjoy the breadth of space but lack easy access to major transportation routes. This can be especially problematic in emergency situations.

Air ambulances are helicopters used in emergency medical situations when a traditional ambulance cannot reach the scene or transport the patient easily or quickly enough. Air ambulance crews are supplied with equipment and professional training that enable them to provide medical treatment to a critically injured or ill patient in flight. With the use of helicopters, the professional pilots are able to get the medical personnel to the patient more quickly and transport patients to a hospital faster, therefore providing consistently superior critical care.

Many of New York's most rural areas can be hours away from trauma centers. One such area is northern New York. Five years ago, northern New York lost the MEDEVAC services of the Military Assistance to Safety and Traffic unit at Fort Drum in Jefferson County. Now air ambulances come from Saranac Lake or Syracuse which severely lengthens response times often having to stop for fuel and are weather dependent especially in the winter months.

Travel of traditional ambulances can be unpredictable and inconsistent. Syracuse provides the closest level 1 trauma center to the region

which for some areas in northern New York can be 3 hours by traditional ambulance in good conditions. Like other areas of the State, the people and visitors of northern New York would greatly benefit from the presence of a professional air ambulance team.

Lower call volume and the expense of running a full-time air ambulance service, has made it difficult to attract companies to New York's rural regions. By allowing air ambulance companies to solicit membership subscriptions, we offer a way to mitigate the high cost of doing business in New York.

Under current law, soliciting of membership subscriptions for air ambulance services is considered a form of medical insurance.

Section 1108 of the insurance law includes a host of instances when certain parties are exempt from licensing and other requirements to add one additional exemption. The new subsection (k) exempts any private air ambulance service that solicits membership subscriptions.

By enacting this legislation we recognize the need of rural communities in New York to have fast, effective emergency medical service. By attracting air ambulance companies to New York, we'll be filling a need for medical transport and service that saves lives.

Furthermore, the legislation allows air ambulance companies to solicit membership subscriptions and provides the additional service on an unsubsidized, tax-free basis which eases the burden on rural municipalities and their residents.

Legislative history

New bill.

Fiscal implications

None to the state.

Effective date

This act shall take effect on ninetieth day after it shall have become law.