On May 8, 2018, the federal Court of Appeals for the Eleventh Circuit held in Bailey v. Rocky Mountain Holdings, LLC that the federal Airline Deregulation Act (ADA) preempts a provision of Florida's automobile insurance law.
The Court found that fees billed by air ambulance carriers that provide services in auto accidents are governed by the ADA and are not subject to a Florida statute that prohibits medical providers from balance billing the policyholder for amounts not paid by the insurer.
With this decision, the Eleventh Circuit Court joins state and federal courts in Kansas, Texas, West Virginia, and Wyoming, which have also recently found that the ADA preempts state insurance laws regulating air ambulance fees.
NCCI will continue to monitor air ambulance cases for potential impacts on workers' compensation.
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