The ambulance industry has a major "Collection Gap." Because they are legally required to provide care regardless of a patient's ability to pay, they amass billions in unpaid debt every year.
Studies show that nearly 50% of ambulance bills are sent to collections. Because providers know they will never see half the money they bill, they artificially inflate their "Charge Master" rates to ensure the small percentage of insurance companies that do pay provide enough revenue to keep the lights on.
Credit Score Impacts
Medical debt is the leading cause of bankruptcy in the United States. However, recent changes to credit reporting rules mean that paid medical debt is no longer included on credit reports, and unpaid medical debt under $500 is often ignored by the major bureaus. Unfortunately, most ambulance bills are well over $500, meaning a single ride can have long-lasting impacts on your ability to get a mortgage or car loan.
Pro-Tip: If your bill goes to collections, do not ignore it. Collection agencies often buy ambulance debt for 5-10 cents on the dollar. You can often settle an old $1,500 bill for $300 if you have the cash ready to pay upfront.