American Association of State Compensation insurance Fund
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member fund.

CopperPoint Mutual Insurance Company
Phone: (602) 631-2000
Address: 3030 North Third Street
Phoenix, AZ   85012

State Compensation Insurance Fund
Address: 333 Bush Street
Suite 800
San Francisco, CA   94104

Pinnacol Assurance
Phone: (303) 361-4000
Address: 7501 East Lowry Boulevard

Denver, CO   80230-7006

Hawaii Employers' Mutual Insurance Co. Inc.
Phone: (808) 524-3642
Address: 1100 Alakea Street
Suite 1400
Honolulu, HI   96813

Idaho State Insurance Fund
Phone: (208) 332-2100
Address: 1215 West State Street
P.O. Box 83720
Boise, ID   83720-0044

Kentucky Employers Mutual Insurance
Phone: (859) 425-7800
Address: 250 West Main Street Suite 900

Lexington, KY   40507-1724

Louisiana Workers' Compensation Corporation
Phone: (225) 924-7788
Address: 2237 South Acadian Thruway

Baton Rouge, LA   70808

Maine Employers Mutual Insurance Company (MEMIC)
Phone: (207) 791-3300
Address: 261 Commercial Street
P.O. Box 11409
Portland, ME   04104

Chesapeake Employers’ Insurance Company
Phone: (410) 494-2000
Address: 8722 Loch Raven Boulevard

Towson, MD   21286-2235

SFM Mutual Insurance Company
Phone: (952) 838-4200
Address: 3500 American Boulevard West Suite 700

Bloomington, MN   55431-4434

Missouri Employers Mutual Insurance
Phone: (800) 442-0590
Address: 101 N Keene St

Columbia, MO   65201

Montana State Fund
Phone: (406) 495-5015
Address: 855 Front Street
P.O. Box 4759
Helena, MT   59604-4759

New Mexico Mutual Group
Phone: (505) 345-7260
Address: 3900 Singer Boulevard NE

Albuquerque, NM   87109

New York State Insurance Fund
Phone: (212) 312-7001
Address: PO Box 66699

Albany, NY   12206

Workforce Safety and Insurance
Phone: (701) 328-3800
Address: 1600 East Century Avenue Suite 1

Bismarck, ND   58506-5585

Ohio Bureau of Workers Compensation
Phone: (800) 644-6292
Address: 30 West Spring Street

Columbus, OH   43215-2256

CompSource Mutual Insurance Company
Phone: (405) 232-7663
Address: 1901 North Walnut Ave.
P.O. Box 53505
Oklahoma City, OK   73152-3505

State Accident Insurance Fund (SAIF)
Phone: (503) 373-8000
Address: 400 High Street SE

Salem, OR   97312-1000

Pennsylvania State Workers Insurance Fund
Phone: (570) 963-4635
Address: 100 Lackawanna Avenue
P.O. Box 5100
Scranton, PA   18505-5100

Beacon Mutual Insurance Company
Phone: (401) 825-2667
Address: One Beacon Centre

Warwick, RI   02886-1378

South Carolina State Accident Fund
Phone: (803) 896-5800
Address: P.O. Box 102100

Columbia, SC   29221-5000

Texas Mutual Insurance Company
Phone: (800) 859-5995
Address: 6210 East Highway 290

Austin, TX   78723-1098

Workers Compensation Fund
Phone: (800) 446-2667
Address: 100 West Towne Ridge Parkway
P.O. Box 2227
Sandy, UT   84070

Washington Department of Labor and Industries
Phone: (360) 902-5800
Address: P.O. Box 44001

Olympia, WA   98504-4001

Wyoming Division of Workers Safety & Compensation
Phone: (307) 777-7159
Address: Cheyenne Business Center
1510 East Pershing Boulevard
Cheyenne, WY   82002

Workers Compensation Board - Alberta
Phone: (780) 498-3999
Address: 9925-107 Street
P.O. Box 2415
Edmonton, AB   T5J 2S5

Workers Compensation Board of British Columbia (WORKSAFEBC)
Phone: (604) 273-2266
Address: P.O. Box 5350 Station Terminal

Vancouver, BC   V6B 5L5

Manitoba Workers Compensation Board
Phone: (204) 954-4321
Address: 333 Broadway

Winnipeg, MB   R3C 4W3

Phone: (506) 632-2200
Address: 1 Portland Street
P.O. Box 160
Saint John, NB   E2L 3X9

Workers Compensation Board of Nova Scotia
Phone: (902) 491-8999
Address: 5668 South Street
P.O. Box 1150
Halifax, NS   B3J 2Y2

Prince Edward Island Workers Compensation Board
Phone: (902) 368-5680
Address: 14 Weymouth Street

Charlottetown, PE   C1A 7L7

Saskatchewan Workers Compensation Board
Phone: (306) 787-4370
Address: 200 - 1881 Scarth Street

Regina, SK   S4P 4L1

Puerto Rico State Insurance Fund Corporation
Phone: (787) 793-5959
Address: G.P.O. Box 365028

San Juan, PR   00936-5028
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AASCIF Newsletter

Court Holds Wyoming Fee Schedule for Air-Ambulance Services Preempted by Airline Deregulation Act

By Harvey Flewelling, Associate General Counsel and Appeals Counsel, Pinnacol Assurance

In the recent case of EagleMed LLC v. Cox, 868 F.3d 893 (10th Cir. 2017), the 10th Circuit Court of Appeals affirmed a U.S. District Court decision that a Wyoming statute and associated regulations setting forth a fee schedule for air-ambulance services in workers’ compensation claims are preempted by the federal Airline Deregulation Act (ADA). However, the 10th Circuit reversed the District Court’s order that Wyoming’s Department of Workforce Services (the Department) must pay in full any amount charged by an air-ambulance provider that transported a covered injured worker. In so holding, the 10th Circuit left the question of whether and, if so, how such services will be paid, up in the air (pun intended).

The plaintiffs in EagleMed were air-ambulance service providers that operate in Wyoming and throughout the United States. They delivered emergency air transportation for critically ill or severely injured patients to the closest appropriate hospital when requested by first responders or third-party medical professionals. The plaintiffs employed paramedics and nurses to treat patients during transportation. They held operating certificates issued by the Federal Aviation Administration and were licensed by the state of Wyoming.

Pursuant to Wyoming Statute § 27-14-401(e), the Department adopted a fee schedule that lists the maximum allowable reimbursement rates for air-ambulances. Wyoming law also prohibits providers of injury-related services from billing injured workers. Plaintiffs submitted bills for payment to the Department for a much higher amount than the regulatory rate. The Department responded to these bills by paying only the regulatory rate. From September 2012 to August 2015, the Department denied payment for the portion of the bills by plaintiffs that exceeded the fee schedule by over $1.7 million.

Plaintiffs filed a lawsuit in U.S. District Court against the Department and several of its officials. They sought a declaration that Wyoming’s workers’ compensation statute and related regulations setting rates for air-ambulance services are preempted by ADA, 49 U.S.C. §§ 1371 et seq. Under the ADA, states cannot enact or enforce laws related to the price, route, or service of an air carrier. Plaintiffs requested a permanent injunction preventing defendants from enforcing the statute and regulations, and from promulgating any future regulations related to air carrier rates.

The District Court judge held that the Wyoming statute and rules are preempted by the ADA to the extent they set the maximum rate that air-ambulances can charge for their services. The judge’s order permanently enjoined the state officials from enforcing the statute and fee schedule against air-ambulance services and required the Division in the future to reimburse all air-ambulance services for the full amount charged.

The 10th Circuit agreed with the District Court that the Wyoming statute and associated rate schedule for ambulance services are preempted by the ADA to the extent that they set maximum reimbursement rates for air-ambulance services provided to injured workers covered by Wyoming workers’ compensation law. However, the 10th Circuit concluded that the District Court abused its discretion insofar as it required the Department to pay in full any amount charged by an air-ambulance provider that transported a covered injured worker.

The 10th Circuit noted that, in fashioning injunctive relief against a state agency or official, a district court must ensure that the relief ordered is no broader than necessary to remedy the federal violation. Enjoining defendants from enforcing the preempted statute and fee schedule was sufficient to remedy the federal violation. Placing an affirmative duty to reimburse in full all air-ambulance claims was going too far. Federal law establishes no duty for states to pay the air-ambulance claims of injured workers who are covered by state workers’ compensation statutes, no matter what rates are charged. The 10th Circuit observed that unfortunate consequences may arise due to the “ill-conceived” intersection of the ADA’s broad preemption provision with states' attempts to administer financially sound workers’ compensation programs in the face of skyrocketing air-ambulance bills, but left it for the Department officials to determine, as a matter of state law, how Wyoming should administer its workers' compensation program within the limitations set by federal law.



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