Coos Bay officials are weighing whether to bill insurance companies for certain fire department responses as rising costs strain the city’s budget.
Fire Chief Jeff Adkins told the city council on Tuesday that expenses are growing faster than revenue, prompting the department to explore alternatives to avoid cuts. Fire services are typically funded through taxes and provided at no cost to residents.
“Primarily, it's shifting the burden of expense, not to the taxpayers who are already paying for our readiness and the stations and equipment and salaries, but to (those) using our services," Adkins said.
Under the proposal, the department would bill insurance companies first. If a claim is denied, invoices would be sent only to people who live outside the city.
Council members didn’t seem thrilled. Council President Lucinda DiNovo said she could support billing insurers but not individuals.
“As someone who is in the tourism industry, it feels like, ‘Welcome to our community, but if you get in an accident and your insurance doesn't cover it, we're going to bill you,’” she said.
Other councilors questioned the optics of the billing strategy, especially because the city estimates the program would generate about $20,000 a year— a small fraction of the fire department’s roughly $4.5 million budget.
Adkins said the department lacks the administrative capabilities to manage billing and would rely on a third-party vendor if the plan moves forward.
The proposal could also include fees for repeat calls to discourage frequent use. Adkins said crews often respond multiple times to the same individuals, such as elderly people who call after falls.
He recalled one case.
"I think we were there 84 times in two years," Adkins said. "It just creates a ton of impact to our staff, potential back injuries and everything else."
Adkins said billing for certain services is becoming the industry standard. He pointed to a number of other communities, including Tillamook, Forest Grove and Cannon Beach, which all bill for emergency services.
He told councilors he may return with a revised proposal.
