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A class action alleges that medical air transport company Air Methods charges extreme fees for medical evacuation helicopter flights.
According to the complaint, it is the general business practice of Air Methods and its parent company Rocky Mountain Holdings LLC to “charge higher prices that bear no reasonable relationship to the services rendered or what is customarily charged for the services.”
“[T]hese prices and charges are generally many times the actual cost of providing care,” the class action continues.
Plaintiff Jenny Lee Stephens uses her own experience with Air Methods as an example. Stephens states that she was involved in a traffic accident in Calhoun County, Ala., in April of 2016.
An ambulance arrived at the accident, and called in a helicopter for a medical evacuation of Stephens.
Stephens claims that she was unconscious at the time, and was taken by an Air Methods helicopter 59 miles to a hospital in Birmingham. Stephens allegedly received an invoice from Air Methods for $51,898.71.
Stephens states that she has health insurance from Blue Cross Blue Shield of Alabama, but it did not help because Air Methods is not in the insurance company’s network.
The class action asserts that Blue Cross Blue Shield of Alabama paid only $9,419 of the Air Methods bill, leaving Stephens with the remaining bill of over $40,000.
The Air Methods price gouging air transport class action lawsuit alleges that Stephens did not agree to being flown by helicopter by Air Methods, and did not agree to the company’s rates for doing so. That means Air Methods and Stephens did not have a contract, according to the complaint.
The class action argues that charges for services performed under a “quasi-contract” should be “uniform, customary, and reasonable.”
Since the rates charged by Air Methods are “generally many times higher” than the standard rate, the company has “breached its covenant of good faith and fair dealing” and has been “unjustly enriched.”
The class action contends that by refusing to enter into agreements with health insurance companies, Air Methods is concealing its pricing structure from consumers.
In addition, refusing to enter into such agreements is part of Air Methods’ practice of not negotiating its extravagant rates.
“[T]he prices charged to Stephens and members of the class are the result of Defendants’ policy of establishing an inflated pricing scheme and refusing to discount prices to those who have no ability to negotiate,” the class action argues.
Stephens seeks to represent a Class of “All patients who have received emergency medical transport by Defendant from a location in Alabama, Florida, Georgia, Mississippi, or Tennessee to a hospital during the period of three (3) years prior to the commencement of this action.”
The class action requests restitution, disgorgement of all Air Methods’ “illicit profits,” and an injunction forcing Air Methods to stop charging its excessive rates.
Stephens is represented by Andrew P. Campbell and Stephen D. Wadsworth of Campbell, Guin, LLC and Arthur F. Fite of The Fite Law Firm, LLC.
The Air Methods Price Gouging Air Transport Class Action Lawsuit is Jenny Lee Stephens v. Air Methods Corporation, et al., Case No. 2:16-cv-01659, in the U.S. District Court for the Northern District of Alabama, Southern Division.
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9 thoughts onAir Methods Class Action Alleges Price Gouging Air Transport
Is the still on going suit? I can’t find anything out yet. I thought I files suit
SCAMMED BY FEAR
It was May 14th 2019. My wife and I just got home from spending a wonderful day with our 2yr old. 20 min. later I heard a blood curdling scream. As I ran into the kitchen I noticed my wife screaming with Aiden in her arms he had blisters all over the front of him. His skin looked like it was just melting off. It seems that he had stacked a diaper box a Lego box and a bucket to climb to the coffee pot. He pulled the entire pot on top of him.
As you could imagine the terror of the situation. The baby was screaming in agony. I knew that I absolutely had no choice but to get him to the emergency room by myself as soon as possible. It would have taken an ambulance 15 minutes just to get to our property. I told my wife to get in the car and we were pulling up to the ER in about 10 minutes. It was absolutely the longest 10 minutes of our lives.
When we got to the ER the staff was absolutely amazing in every way. The ER doctor told us that Aiden had to be Air Lifted to a special hospital in Mobile, Alabama 130 miles away. OK WHATEVER YOU SAY DOCTOR!!! A helicopter landed, the pilots/EMT’s came in to prepare Aiden for the flight. The pilot told my wife to sign a release giving them permission to fly Aiden. Of course she’s not going to question WHAT she’s signing when all we can hear is our baby crying in agony. I instructed my wife and 2 older boys to meet me in Alabama.
When we finally arrived in Alabama we were greeted by my wife and 2 sons who had been waiting for our emergency air transport to arrive. I thought that It was taking awhile but I never thought that my wife would beat us there. The staff at the hospital was amazing to say the least. Today Aiden is doing incredible. He has virtually No visible scars from the accident and is anxiously awaiting a summer where he is allowed to have some sun exposure.
The boys are covered under Florida Kid Care. Aiden is with Humana. On 1-23-2020 I received a bill from a company called Air Methods that read we have contacted your insurance company and you are responsible for the remaining balance.
BASE CHARGES $37,967.38 + MILEAGE CHARGES $32,031.62 =
BILLED AMOUNT &69,999.00 – INSURANCE PAID $0.00 =
OUTSTANDING BALANCE $69,999,00
After I starred at the document for awhile, I started to realize that this wasn’t some sick joke and that these people were serious about the bill that they had just sent me. I had severe chest pains and a panic attack right there. When I started to do some research I realized that this is a very serious problem happening to countless Americans because of a federal law protecting Air transport companies from being told how much they can charge. At no point in the process is there any transparency to the families who are signing a “release for flight” telling them that there is a very good chance that your insurance doesn’t cover this flight but it’s probably going to cost you about $69,999.00. Not $70,000 that would be way too much.
What am I supposed to do. This company is going to ruin my credit and they scammed me by fear.
Sincerely,
Bob Armer
Bob@armer.com
My nephew was in a car accident and was stat-flighted to hospital. No health insurance (he had just got in the union and did not qualify for health benefits until he got his hours in), liability only on his car. He got a bill for $48,000. May as well be $48 million to him…no assets, no car, not able to go back to work yet. They said they would accept $12,200 if he would pay it all in one lump sum. How is he supposed to do that? Such an astronomical amount. He said he could have gone in the ambulance, but nobody asked him. Don’t know what he’s going to do.
My husband got pneumonia and Had to be flown out by Air Methods on life support. The trip was 25 min away by helicopter.They charged our insurance company, BCBS $62,590.87!!! Our insurance paid the whole amount, but they sent the check to me. I kept 40.00 of it to buy my husband’s medicine and sent them 62,550.00.87. OMG!! You would think that I stole their only child!!! They have harrassed the crap out of us over that $40.00!!!
My 27 year old son was transported via helicopter from Gulf Shores, Alabama To Sacred Heart Hospital in Pensacola, roughly 50 miles. He was unconscious and suffering from a gunshot wound to the chest (self-inflicted), a situation I doubt our local hospital was equipped to handle. He had Blue Cross Blue Shield of Alabama at the time. His bill was over $45,000.00. BCBS paid about $8000.00 of this stating “not in Network”. He has been a student most of his lifetime with jobs paying the minimum ,therefore he does not have the means to pay this debt. It is ruining his life at this time. Is there anyway he can become a member of this class action lawsuit? He’s talkin about filing bankruptcy at this point. I hate for him to do that at his young age. Not a great way to start the rest of your life. I did state “self-inflicted” on the injury so I need to add that this is effecting his depression/anxiety.
I am the victim of Rocky Mountain Holdings price gouging. I was transported from Ashland Alabama to Birmingham following an automobile accident on January 23, 2017. Blue Cross has only paid $8700.00 of the $55,000 bill because they say they are out of district. I have filed an appeal with Blue Cross and continue to be contacted by Rocky Mountain Holdings including threats of a collection agency. Please contact me concerning this situation.
Thank you.
The case is still moving through the courts and has not yet reached a settlement. Claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
You may want to contact class counsel to discuss your situation. Counsel is listed in the article and can be Googled for contact information.
My husband has also been a victim of Rocky Mountain Holdings price gouging. He was transported 18 miles back in Oct. 2016 and the bill was over $40,000. The insurance company paid only $6,000 and they have been harassing us for the over $32,000 balance ever since.
We were never given a choice in the transport. My husband requested to go by ground ambulance but was denied.
I think there are several hospitals here in Fl. that are in gouging partnership with this company!
I have contacted the governor’s office, Senator Marco Rubio’s office, a local congressman, Attorney Gen. Pam Bondi’s office and a few others. No help! I am told that the state has not power when it comes to air transport because they fall under the same jurisdiction of FAA as commercial airlines and their not price regulated! Bottom line is that somewhere some lawmaker must be benefitting from the unethical practice of this company. They have been given a license to steal and something needs to be done about it!
I’m currently struggling with insurance & air methods myself. Hang in there, we gotta fight these bastards, they are price gouging & trying to take advantage of our unfortunate circumstances. They are simply scumbags & we gotta fight em’!! Government needs to exempt air ambulances from the airline deregulation act of 1978, that’s how they are getting away with this highway robbery