Everything You Need To Know About NEMT Insurance

Regardless of if you’re here because you’re not satisfied with your current coverage or because you’re new to the industry and need guidance, this article is your guide to the whats, whys, and hows of NEMT insurance.

NEMT Insurance with a non-emergency medical vehicle driving through the beautiful red rocks of Utah

What’s Non-Emergency Medical Transportation?

Let’s start from square one and define the industry behind the insurance.

NEMT is a form of commercial transportation service focused on transporting those with medical needs.

Transportation can include trips to routine healthcare appointments, pharmaceutical pickups, or urgent care centers. NEMT drivers transport passengers who can’t transport themselves to facilities that help address non-emergency medical needs.

Who Pays for NEMT Services?

NEMT transportation often falls under benefits provided by Medicaid or Medicare, ensuring those who need help can receive it without an increase in their health-related expenses.

However, while Medicare and Medicaid Services cover or reduce the patient’s expense, the driver’s costs are covered independently. This includes the expense of NEMT Insurance.

Do I Need NEMT Insurance?

Anyone who wants to transport passengers for-hire (paid service) to non-emergency medical visits must acquire NEMT insurance. NEMT insurance will protect your fleet, your drivers, the people you serve, and the people you come in contact with on the road.

It’s important to note that while NEMT services are often federally funded and managed, individual states generally regulate NEMT insurance coverage.

“NEMT Insurance is a sub-niche of the commercial auto insurance umbrella. NEMT drivers need insurance that meets the minimum requirements set at both a state and federal level. NEMT drivers who work for a NEMT broker must also meet their broker’s minimum requirements to work.”

At LAP, we know that the process of navigating regulatory bodies is challenging, but our team carries over 35 years of transportation industry experience. We are equipped to help you sail the nuances of regulations, both federal and local.

What Does NEMT Insurance Cover?

To start a medical transportation business, you will need an approved FMCSA Operating Authority Registration from the Department of Transportation (DOT) and a Designated Process Agent. Beyond that, you need proper insurance. The definition of “proper” will depend on the state you’re operating in. In general, you need coverage that includes the following:

  1. Liability Coverage to Protect From Accidents
  2. General Liability Coverage to Protect From Non-Automobile Accidents
  3. Uninsured and Underinsured Motorist Coverage

NEMT Vehicle Class

Vehicles eligible for NEMT insurance include wheelchair-accessible vans, stretcher vans, sedans, stretcher cars, and paratransit vehicles. The type of vehicle is not as important as its intent.

We’ve successfully insured shuttles for daycare transportation, vans used as non-emergency medical vehicles, taxislimos, and black cars used as medical courtesy transports.

How Much is Non-Emergency Medical Transportation Insurance

LAP works with customers in Alabama, New Jersey, and Pennsylvania. If you give us a call, we would be happy to provide a ballpark estimate. The estimate can help you determine if further exploration of our services is worth your time or not.

If you want to talk about costs in generalities, we’ve seen premiums run from a few hundred dollars per vehicle annually to several thousand. The discrepancy is based on several factors, including:

  • Vehicle Type, Age, Value, Features, Etc.
  • Number of Vehicles in Your Fleet
  • Number of Drivers and Driver Experience
  • Number of Passengers Your Vehicle Can Accommodate
  • The State or States You’re Operating In
  • Area You Service, With Rural Areas Being More Affordable Than Cities
  • Your Company’s Driving History Including Past Claims
  • Travel Radius

What Happens To My Coverage If I Drive Across a State Line? 

When we write your NEMT insurance policy, it’s important for us to discuss the primary state you intend to drive in and other possible states. In general, LAP’s policies will adjust to match the state limit as you cross state borders. For example, let’s say you’re driving in New Jersey, and you cross into a state with a higher state limit. In that case, your policy will adjust to match the state you’re driving in. 

Please note that some states have interstate coverage requirements for crossing state borders while transporting people. Make sure to stay within your coverage territory and reach out to us if you have any questions.

 

About LAP’s NEMT Coverage

Other factors also play into the cost, but there are things you can do to help lower the price of insurance, including driver education and maintaining a safe driving record.

In addition, LAP provides technology to assist you in monitoring and coaching driver behavior, which can positively impact insurance premiums.

Our Paratransit/NEMT program highlights include coverage for:

  • Fleets of 12 or more vehicles
  • Passenger Seating of Eight or Less
  • Named Driver Policy
  • Every Licensed Driver Considered
  • 3 Years Favorable Loss Runs
  • New Ventures Considered (Subject to Experience)
  • Limits up to $1 Million

What Should I Look For When Shopping for NEMT Insurance?

When shopping for NEMT Insurance, there are several factors to consider. Below is a list of questions you can use when interviewing insurance agents.

  1. Have you ever worked in the transportation industry?
  2. What experience do you have with insurance requirements specific to non-emergency medical transportation?
  3. What challenges do you foresee that are unique to my situation, and are you equipped to help us overcome them?
  4. What resources or tools do you provide beyond insurance to invest in our company’s success?
  5. If my fleet grows, can you continue to provide coverage?
  6. What insurance should I consider and why?
  7. Do you require a copy of the provider insurance section of the contract I have with my contract provider?
  8. What does this policy not cover?
  9. Is my policy direct billed, agency billed, or premium financed?

LAP’s Response

Our answers to the questions above are what set LAP apart.

  1. The team at LAP has 35 years of transport industry experience.
  2. We aren’t a big box chain with a nameless call center answering questions. We are an insurance company with insurance experience and transportation industry experience. We’ve lived the nuances that other companies fail to see and understand.
  3. The team at LAP will discuss your fleet and pull from their experience to address your unique needs and solve problems before they become problems.
  4. LAP equips customers with dashcams, GPS tracking software, and taxi management software—technology that will empower your long-term success.
  5. We can. We cover both small and large fleets.
  6. We will review your specific needs. We never recommend a one-size-fits-all approach.
  7. If the agent you are interviewing doesn’t require a copy of your NEMT coverage contract, run. A good agent will review the contract and take on the burden of ensuring the policy meets their requirements. We will do the legwork for you.

 

Give us a call to discuss all of your questions and concerns. We’re in this together.

Photo Credit: Bradley Dunn on Unsplash

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