OTTUMWA —
Rates to ride the Ottumwa Transit buses may change in the near future, but officials hope it won’t impact what select customers pay.
The Iowa Medicaid Enterprises told the Ottumwa Transit Authority that their billing rates are no longer acceptable. If OTA changes the rates, that could mean a revenue loss of $150,000 per year, said OTA Director Pam Ward. The IME is the financial payee for more than 300 clients transported by OTA and 10-15 Transit.
She said she has tried to communicate with the IME but has had no response on the issue. IME wants OTA to stay at a rate of 44 cents per mile and also lower the unit rates. That means that riders would be charged for the direct route to their destination instead of the number of miles the bus route takes through town to get there.
“That can’t work; that absolutely can’t work,” Ward said. “We can go to the billing process that they want us to, but it’s going to be at a higher per unit rate. We don’t have $150,000 surplus of revenue to absorb that kind of revenue loss.”
In order for OTA to stay revenue neutral, the per mile rate would have to be increased to 76 cents, Ward said. However, IME is requesting the rate stay the same. If increasing the rate is possible, the customer would end up spending about the same amount for a ride because they would be charged a higher per mile rate but for fewer miles.
In other words, OTA has been billing based on customer mile, but members of the transit board were told that they need to charge based on transporting the customer from point A to point B.
“The big thing is we want it to be revenue neutral for all parties involved. The customers, counties, and we want it to be revenue neutral for us as well,” Ward said.
Along with the possible $150,000 in lost revenue, Ward said they expect a cut of about $64,000 in state funding.
OTA is consulting with an attorney on the issue, and Ward hopes that they are able to negotiate an agreement that would keep them revenue neutral.
“We’ll just have to wait and see,” she said.
The OTA will hold a board meeting at 9 a.m. Tuesday at 2417 S. Emma St. in the Transit Conference Room.
Ward will also give monthly reports at Ottumwa City Council meetings on various OTA news starting at the Aug. 3 meeting.
New buses more fuel-efficient
OTTUMWA — Officials at the Ottumwa Transit Authority can already see the impacts from the nine new buses that debuted this April.
Ottumwa Transit Director Pam Ward said the vehicles are about 50 percent more fuel efficient compared to the old buses.
“We were getting five miles to the gallon on the old buses; now they’re averaging between 9-10 [miles per gallon],” Ward said.
In total, that’s a savings of about 50 gallons per week among all nine buses. That amounts to about 2,600 gallons less used in a year.
“We are extremely happy,” Ward said.
Every summer, OTA offers free rides for students. Ward said that number of free rides has doubled from last year, which could be due to the new buses.
The buses are 102 inches wide and 34 feet long. That’s about 6 inches wider than the old buses, which were about 14 years old. They are slightly smaller and weigh less than the previous buses.
Inside the bus, the seats are cloth, compared to vinyl from the old vehicles. The seats are also molded to make for a more comfortable ride.
The bus drivers have said the vehicles are much easier to maneuver, especially down Ottumwa’s small and narrow roads. They are also much more accessible for customers with mobility needs.
The replacements cost about $1.5 million and were paid for with stimulus funding.
Local News
Related Photos
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The Iowa Medicaid Enterprises told the Ottumwa Transit Authority that their billing rates are no longer acceptable. If OTA changes the rates, that could mean a revenue loss of $150,000 per year, said OTA Director Pam Ward. Courier file photo
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OLYMPUS DIGITAL CAMERA Courier file photo
OTA at odds over Medicaid rider rates
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