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Response: Include in Minn. Stat. § 471.59 <br />(the joint powers statute) language <br />substantially similar to Minn. Stat. § <br />626.93 that clarifies that Indian tribes <br />entering into joint powers relationships <br />agree to: <br />a) Be subject to liability for its torts and <br />those of its officers, employees, and <br />agents acting within the scope of their <br />employment or duties arising out of <br />the joint powers agreement to the <br />same extent as a municipality under <br />Minn. Stat. ch. 466; and <br />b) Notwithstanding Minn. Stat. § 16C.05, <br />subd. 7, waive its sovereign immunity <br />with respect to claims arising from <br />liability under the joint powers. <br />SD-14. Ambulance Service Costs <br />and Liability <br />Issue: The cost of providing ambulance care <br />has increased steadily over the last several <br />years due in part to changes in Medicare and <br />Medicaid reimbursement. The federal <br />Balanced Budget Act (BBA) of 1997 made <br />two significant changes to ambulance <br />billing. First, the act mandated that all <br />ambulance services accept Medicare and <br />Medicaid assignments as payment in full; <br />that is, ambulance services cannot bill the <br />Medicare or Medicaid patient for any unpaid <br />balance beyond the Medicare or Medicaid <br />assignment. Second, the act mandated a <br />uniform fee schedule that was implemented <br />in April 2002. The new fee schedule <br />significantly reduced reimbursement levels <br />for many ambulance services. The BBA <br />mandates are impacting the ability of some <br />Minnesota ambulance service providers to <br />adequately fund their operations. <br />The loss of revenue due to Medicare and <br />Medicaid reimbursement changes, coupled <br />with higher insurance rates, is affecting the <br />22 <br />ability of many non -government -based <br />ambulance service providers to deliver <br />emergency care, particularly in rural <br />Minnesota. All ambulance services and <br />personnel are regulated by Minn. Stat. ch. <br />144E and must comply with the same <br />licensing, training, and equipment -related <br />requirements, regardless of ownership. <br />In addition, the liability exposure of medical <br />directors associated with ambulance service <br />is a concern. While medical directors of <br />government -based ambulance services may <br />arguably be covered by public official <br />immunity, the law is unclear and should be <br />clarified. <br />Response: The League of Minnesota <br />Cities supports federal legislation that <br />would: <br />a) Require Medicare to set ambulance <br />payment rates at the "regional cost" of <br />providing service; <br />b) Require adequate reimbursement for <br />ambulance providers; <br />c) Establish a "prudent layperson" <br />standard for the payment of <br />emergency ambulance claims such <br />that if a reasonable person believed an <br />emergency medical problem existed <br />when the ambulance was requested, <br />Medicare would pay the claim; <br />d) Make it easier for providers to file <br />claims with Medicare by eliminating a <br />processing system that often leads to <br />the rejection of legitimate <br />reimbursement claims. <br />The League also urges the Legislature to <br />extend the protection of the state and <br />municipal Tort Claims Act to licensed <br />third parties that contract with a <br />municipality to provide ambulance <br />services. The League also supports <br />extending the applicability of public <br />