Kennewick staff propose annual CPI-W escalator to ambulance transport fees

Kennewick fire officials told the City Council workshop on Sept. 22 that the city is proposing an annual escalator for ambulance transport fees tied to the CPI-W to keep rates aligned with Medicare reimbursement trends. Chief Heffner said the change aims to prevent the city from "leaving available revenue uncollected" that helps fund the public ambulance utility.

The presentation noted the city charged a flat $660 prior to recent changes while Medicare allowed reimbursements higher than that. "For example, prior to this year, the city was charging a flat rate of $660 yet Medicare allowed a full reimbursement of $804.45," Chief Heffner said. He described a tiered fee structure adopted in 2026 that aligns billing with service levels (basic life support versus advanced life support) and urged an annual escalator so the city can collect amounts Medicare will allow. Staff emphasized that Medicare and Medicaid beneficiaries would not be responsible for amounts beyond their program's allowable reimbursement.

Council members pressed for clarity on how the escalator would interact with single-year CPI spikes and requested staff return with precise fiscal impacts and the timeline to file rates with the Office of Insurance Commissioner. Staff said any escalator-driven rates would have to be submitted by the end of October for a January effective date and recommended the council consider the proposal at the Oct. 6 meeting.