The first step in avoiding high insurance costs is to get the right insurance policy. There are many options out there, and you should make sure you understand each one. You should also learn more about each one, including how much coverage you really need. It will also be helpful to pair your insurance policy with the right NEMT software. Good software will allow you to keep track of drivers and vehicles, which will help you reduce insurance costs and stress.
Another consideration is the broker contract. Many states include NEMT in their overall administrative costs. This means that brokers must meet strict guidelines and are not permitted to self-refer Medicaid beneficiaries. Brokerage agreements should also contain a stop-loss clause so that they can terminate their contracts if they do not meet their obligations.
Another way to avoid high insurance costs is to make sure your NEMT drivers are properly certified. This helps limit your liability and protect your business. It also lowers your average insurance costs. A criminal background check is especially important. Any driver with a criminal record is a liability for your NEMT operation. You should also check each driver’s driving record thoroughly.
In addition to ensuring that drivers are trained and experienced, NEMT companies should be insured as a business. Many insurance providers require that NEMT drivers meet certain standards and undergo training. You should also make sure your vehicles meet state regulations. By doing so, you can ensure the safety of your clients.
Another factor that influences insurance costs is location. The insurance costs of NEMT drivers vary across states. High traffic areas will require higher premiums than rural areas. Drivers with clean driving records will receive lower rates. However, those who have had accidents are at a higher risk for higher insurance rates.
A state can help minimize the costs by reducing the number of patients who require non-emergency medical transportation services. Telehealth technology can help reduce the need for long-distance travel by delivering healthcare services in people’s homes. This can minimize overall NEMT costs and help the state focus resources on the highest-need patients.
The NEMT industry is heavily regulated by state law. Most states require NEMT operators to carry a minimum level of insurance. If they contract with the state program manager, they may also need to obtain additional coverage. Additionally, NEMT operators are required to have commercial auto liability coverage. This type of coverage protects the vehicles used in their fleet.
The first step in avoiding high insurance costs is ensuring your vehicles are safe. Vehicles with wheelchairs and stretchers are more likely to be involved in an accident than vehicles with normal passenger seating. It can be dangerous for a patient to fall from a wheelchair or a stretcher in an accident, which can lead to injury. If you can control these risks, you can save money on your NEMT insurance premiums.