Indiana Lawmakers Eye Excess Fire Department Charges

An amendment to Indiana House Bill 1447 would reduce the amount some citizens of that state would be billed by fire departments responding to emergencies. The insurance industry trade association, Insurance Institute of Indiana, says the amendment would rein in what the group calls excessive over-billing by Emergency Services Billing Corporation (ESBC), a company hired by fire departments to collect additional revenue for the departments.

The amendment requires fire departments to comply with the Indiana Fire Marshal’s set fee schedule, which will result in fewer Hoosiers stuck with pricey bills for fire runs. Recently, Hoosiers have received bills ranging from a few thousands dollars to upwards of $20,000 from ESBC, the trade association said.

Current Indiana law allows volunteer fire departments to charge fees for specified accidents and fire responses. However, fire department charges must comply with the fee schedule published by the Indiana Fire Marshal. Many volunteer fire departments appear to be in violation of Indiana’s current law, the III said.

Volunteer fire departments in Indiana are contracting with ESBC to collect for fire runs. ESBC touts that the payment for services is typically covered by the insured’s auto insurance policy, which many have found is untrue and are stuck with an expensive bill.

Bills that were typically less than $500 in the past are now in excess of $5,000 and do not comply with the Fire Marshal’s fee schedule. Insurers have historically paid for volunteer fire department services, but coverage is typically limited to $500. This leaves affected citizens liable for the remainder of the bill. The insurance industry believes the charges are fraudulent and are defending their customers against attempts by ESBC to collect. However, those without insurance are left vulnerable.