PHI Air Medical, an air ambulance company, suspended operations at the Red Bluff Air Medical Base at Red Bluff Airport in California amid reimbursement tensions with insurers.
A Sept. 14 PHI news release shared with Becker’s specifically blamed Elevance Health, alleging more than 1,000 No Surprises Act federal arbitration awards that total about $30 million in nationwide debt. PHI has recently been pursuing legal action against Anthem, now called Elevance, in Indiana federal court.
The news release added that Health Care Service Corp.’s Blue Cross Blue Shield of Texas, along with Elevance, has been “repeatedly shirking their obligations to reimburse providers for emergency healthcare.”
“Unfortunately, insurance companies are breaking the law and refusing to reimburse PHI Air Medical for the emergency care we deliver to this community, which makes it impossible to sustain operations,” PHI Health Co-President Paul Julander said. “The situation insurance companies are putting air ambulances providers [in] is akin to walking out of a grocery store without paying — if everyone were to do this, the grocery store would have no choice but to close and the community would lose out.”
PHI said its base in Red Bluff, opened in 2024, houses one of California’s few air ambulances containing whole blood on board. The community it serves lacks a level 1 trauma center within 50 miles, according to the news release.
“We remain committed to complying with the No Surprises Act and to timely payment of all eligible, in-scope [independent dispute resolution] determinations,” Elevance said in a statement shared with Becker’s. “We are addressing the federal IDR process’s eligibility and operational requirements directly and will continue to fulfill our obligations under the law.”
Becker’s contacted BCBS Texas and will update this story if more information becomes available.
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