Bill backed by Tarrant lawmaker could shift how local ambulances do business. Here’s how

August 14, 2026 - 03:13

A new proposal in the Texas Legislature, backed by a Tarrant County representative, could change the financial landscape for local ambulance services. The bill, known as the RESCUE Act, is designed to force insurance companies and government health programs to update the rates they pay for emergency medical transport. Currently, many ambulance providers say they operate on reimbursement formulas that have not kept pace with rising fuel, equipment, and staffing costs.

Under the current system, private insurers often pay far less than the actual cost of a trip, while Medicare and Medicaid use outdated fee schedules. This leaves many rural and suburban ambulance crews struggling to break even. The proposed law would require payers to base reimbursements on a more current and transparent calculation, taking into account regional cost differences and the true expenses of running a 24/7 emergency response unit.

Supporters argue that without this change, some communities could see longer response times or even service cuts. Opponents worry that higher mandated rates could lead to increased premiums for consumers or push some insurers to limit coverage. The bill has been referred to committee, and public hearings are expected in the coming weeks. If passed, it would apply to both private ambulance companies and municipal services, potentially reshaping contracts across the state.