Silverdale Fire Co - Emergency Services

02.03.03

Silverdale OKs ordinance allowing reimbursements for emergency services

Silverdale Borough this week became the first Pennridge area municipality to adopt an emergency services cost reimbursement ordinance, which grants fire companies the authority to seek payments from insurance companies to recoup some of the costs for their fire and rescue services.
While several area municipalities have discussed the idea over the past year, tiny Silverdale is the first to approve the legislation that appears to be a growing trend.

The ordinance allows fire companies that operate in the borough to seek reimbursement for hazardous abatement or environmental incidents (such as spills), and for fire safety and rescue responses.

"The fire companies are just trying to recoup some of their costs," explained borough Solicitor Jeffrey G. Trauger, of the Perkasie law firm Grim, Biehn & Thatcher, who drafted the ordinance.

"No bills would ever be sent to homeowners directly," emphasized Trauger, who said the fire companies would attempt to seek reimbursements from insurance companies.

"It's a growing trend; volunteer fire companies need more revenues," explained Perkasie insurance executive Neil Schwan of McKeever-Egan Insurance.

Schwan explained that most homeowners' insurance policies now list an additional provision called the Fire Department Service Charge. Generally, he said the insurance companies would pay up to $500, without any deductible charge to the homeowner, to the fire company if the municipality has such an ordinance in place.

"If a municipality doesn't have such an ordinance in place, the insurance company is not bound to pay," agreed Silverdale Fire Chief John Gillespie, who thanked Silverdale Borough Council for being the first to take the action.

"It will help offset our costs, which are a growing concern for all fire companies," Gillespie said. "After all, this is just like a small business. We are providing a service and we need to come up the revenues to keep it afloat."

Gillespie said the 32-member company approached council about five months ago to seek the legislation. They have also since approached Hilltown Township and hope those officials follow along.

"We have no idea how much money we'll ultimately be able to recover, but every bit helps," said Gillespie. The chief noted that of the company's 293 calls last year, about 100-120 were for actual fires or other incidents such as rescues or hazmat responses for which the company would bill an insurance company to seek reimbursement.

"We will not go after the homeowner," he emphasized. He also stated the fire company will bill only for equipment used, not labor charges for manpower.

Gillespie noted the fire company is about halfway through a draft for establishing individual billing fees and once completed, it will be sent to borough council for review and approval.

"The borough recognizes that such tools and equipment place a financial burden on volunteer fire companies, and the replacement of such materials and specialized training add to the additional financial burden for them," the ordinance states.

The code notes that such "reasonable costs" may be recovered directly by the fire company or through a third party billing service as an authorized agent. Silverdale is still researching the idea of using a third party agent, or doing the billing work itself.

Sellersville Fire Department last year sent a letter to West Rockhill Township to consider adopting a similar ordinance, but the supervisors were hesitant to the request and no action was ever taken.

Sellersville Chief Don Wilson pointed out that his company had been charging people's homeowner's policies for about the past four or five years, but with limited success. "We continue to bill them, even without the local ordinances, but are not very successful," said Wilson, who noted the reimbursement is only sought if the fire company can piggyback onto the insured's claim.

"We will tag onto a claim, but we don't initiate the claims," explained Wilson.

"I think it's great that Silverdale is doing this," added the Sellersville chief. "We have talked with (state representative) Paul Clymer, R-145, about having it put into effect state-wide. We're all hoping the state does it, but for now we'd like to see all the local municipalities collectively enact this."

Wilson emphasized that the fire company does not choose to cover or not cover a fire or rescue call based on whether the victim has insurance or not.

"What we do, though, is ask for an insurance company name and policy number before we wrap up the incident," he noted.

Perkasie Fire Company Chief Metzler agrees the billing issue is a good thing for fire companies and supports the idea.

Metzler agreed that the cost of operating a fire company, with equipment and training, is getting more expensive, and that with the area's growth, the number of calls are going up as well. He said fundraisers and community support from subscription donations are greatly appreciated, but that more funding is needed.

The Perkasie chief used the example of the last rescue truck the company added five years ago. "By the time we outfitted that vehicle, it cost us $497,000. Our equipment and materials are costly."

By: Charles W. Baum of The News Herald February 06, 2003

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