Air Ambulance Business Could Be Flying Into Storm Clouds

As any high school economics class will explain, more competition in the marketplace is supposed to lead to lower prices. The Airline Deregulation Act of 1978, in fact, was designed to foster competition and help lower costs for the flying public. But for air ambulance service, the law that prohibits states from regulating routes and fares seems to have had a strange effect, insurers and industry analysts suggest. Air services have proliferated and more than 1,100 medical helicopters are now buzzing around the country, double the number from 15 years ago. But prices for their servi...