From
Caroline Siskowic
Title
Ordinance amending Chapter 27, "Vehicles for Hire", Article III "Emergency Medical Service and Ambulance Services," Section 27-72(e), "Provisions of Emergency Services; Fees; Payments and Exceptions; Subscription Program; Auxiliary Ambulances," by increasing the Fire Department's Subscription Membership fee to $75 annually for eligible members per household permitted to participate by state and federal law effective October 1, 2016
Presenter
Robert Fite, Fire Chief
Recommended Action
Approve
Analysis
The City offers a Subscription Membership program for Emergency Medical Services (EMS) to residents of the City of Grand Prairie. A fee of $60 is assessed per year for eligible members per household residing in the City . This voluntary program is available to all residents of Grand Prairie, Texas, head of household, spouse, unmarried children under twenty-five (25) years of age, other residents of the household with court documented guardianship. Medicaid recipients are not permitted to participate per State of Texas Department of Health and Human Services requirements. The Fire Department generates an estimated $48,300 annually in revenue for the general fund from over 800 members for EMS subscription memberships. The $60 annual fee has been in place since the Fire Department began providing EMS on August 1, 2000. This fee has not increased in the history of the City's Fire based EMS.
It is the Fire Department's recommendation, based on the Office of Inspector General (OIG) Anti-kickback Statute, to increase the fee from $60 annually to $75 annually. The OIG has stated that the aggregate subscription fees collected from all members of the program must exceed the aggregate cost-sharing amounts waived for all members or the aggregate subscription fees collected from all Medicare beneficiaries must exceed the aggregate cost-sharing amounts waived for all Medicare beneficiaries. An OIG advisory opinion is attached.
In FY 2015 there were 805 members for a total of $48,300 in revenue collected and $54,617 waived for co-pays, deductible and selfpays for EMS transports resulting in a -$6,317 net for this program. As of May 16, 2016, for FY 2016, the City has collected $36,060 and has waived $24,960 for members' co-pays, deductible and full EMS transport fees for selfpays.
An increase, for renewals and new memberships effective October 1, 2017, of $15 annually will result in an additional $12,075 estimated revenue to the general fund making this program actuarially sound based on a good faith assessment of the City's annual risk utilizing the data on the most recent full fiscal year collections and waivers. The recommended increase is expected to be sufficient to sustain a positive net result for several years.
Financial Consideration
None.
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING THE CODE OF ORDINANCES, CHAPTER 27, "VEHICLES FOR HIRE," ARTICLE III, "EMERGENCY MEDICAL SERVICE AND AMBULANCE SERVICES, " "FEES FOR RESIDENTIAL AND NON-RESIDENTIAL EMERGENCY MEDICAL TRANSPORT, " SECTION 27-72(E) "PROVISION OF EMERGENCY SERVICES" TO BE EFFECTIVE OCTOBER 1, 2016
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. That Article III of Chapter 27 of the Code of Ordinances of the City of Grand Prairie, Texas, is amended to read as follows:
Chapter 27
VEHICLES FOR HIRE; TRANSPORTATION
ARTICLE III. EMERGENCY MEDICAL SERVICES
SECT 27-72. Provision of Emergency Services; Fees; Payments and Exceptions; Subscription Program; Auxiliary Ambulances, Subsection (e) shall be replaced in its entirety as follows:
e) Subscription membership program. A fee of seventy-five dollars ($75.00) shall be assessed per year for eligible members per household residing in the City of Grand Prairie for emergency medical services, transport, medications and supplies. This program is available to all residents of Grand Prairie, Texas, head of household, spouse, unmarried children under twenty-five (25) years of age, other residents of the household with court documented guardianship as permitted to participate by state and federal law.
SECTION 2. That the terms and provisions of this ordinance shall be deemed to be severable and that if the validity of any section, subsection, sentence, clause or phrase of this ordinance should be declared to be invalid, the same shall not affect the validity of any other section, subsection, sentence, clause or phrase of this ordinance.
SECTION 3. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed.
SECTION 4. This ordinance shall be effective October 1, 2017.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 7TH DAY OF June, 2016.