NORWICH – According to city officials, there is a source of untapped revenue that could help Norwich offset the cost of emergency services.
Although no actions have been taken so far, Fire and Police Chief Joseph Angelino approached both the Public Safety/Public Works Committee and the Finance/Personnel Committee about hiring a private company to bill insurance companies for costs incurred when responding to a motor vehicle accident.
Similar to the system the city currently uses to recoup funds for ambulance transports, Angelino has been examining a system that many municipalities are currently adopting. “In situations where the fire department has to perform rescue mitigation and stabilization, this is a way to recoup the money expended for those resources,” Angelino explained during a later conversation.
The chief explained that the insurance billing system would not be used for every accident. Fees would not be assessed for fender-benders and minor accidents, however in the case of a major calamity, the city could be able to obtain a portion of the funds expended.
Since investigation into the plan is still in the early stages, the specifics have not yet been determined. Mayor Joseph Maiurano explained that the system would work to obtain dollars set aside by the insurance companies to pay for costs incurred during an accident. “It’s part of the service that the insurance is billing you for,” Maiurano said.
Angelino is currently examining different companies that offer the insurance billing service. As with the ambulance billing, which is operated by Multi-Med, the company receives reports based on an incident and can use the information to bill an insurance company and attempt to get money back. The company keeps a percentage of the funds received.
If the city decides to move forward with the program, the council will determine whether or not to bill individuals when an insurance agency will not pay, or when an accident involves someone who is not covered. However, Maiurano expressed a desire to avoid billing citizens.
“Whatever the insurance pays, that’s it,” Maiurano said. “The reimbursement is a way to bring revenue in without having to do anything but what we’re doing.”
Angelino did not have specific figures on how many major accidents take place in the city in an average year. Those figures are currently being compiled. “We may not have enough of those situations for this to be viable for the companies to want to handle it,” he explained.
Both the Finance/Personnel Committee and the Public Safety/Public Works Committee are interested in the prospect and asked Angelino to investigate it further. Currently, Angelino is working to get references from other municipalities in New York State currently involved in a similar program to determine if the program would benefit the city and which companies have the best reputation.