A Menu of Suggested Provisions for Public Health Mutual Aid Agreements

Costs & Reimbursement

Descriptive Note

Federal and state statutes must be reviewed to ascertain their possible impact on reimbursement provisions. In declared emergencies, for example, EMAC, Article IX, generally provides that a responding state is entitled to reimbursement of costs from the receiving state. Relatedly, the Stafford Act specifies the circumstances under which federal funds may be available, and prescribes the steps necessary to secure reimbursement.

Optional sample provisions

Agreeing to provide aid without reimbursement:

• The Parties to this Agreement agree to provide the support and services specified in this Agreement on a gratuitous basis, with no expectation of direct reimbursement by the other Party. To the extent that any third-party payor, such as the United States Government, has funds or processes available for reimbursement of a Party’s activities under this Agreement, the Parties agree to cooperate fully with one another in submitting any appropriate claim(s) for reimbursement and providing copies of records necessary to submit claims.
  
   
• Equipment, personnel, and/or services provided pursuant to this Agreement shall be at no charge to the Party requesting aid; however, any expenses recoverable from third parties shall be equitably distributed among responding Parties. Nothing herein shall operate to bar any recovery of funds from any state or federal agency under any existing statutes.
  
   

Providing reimbursement to the responding party:

• Any responding Party rendering aid pursuant to this Agreement shall be reimbursed by the Party receiving such aid for any loss or damage to, or expense incurred in the operation of any equipment and for the cost of all materials, transportation, wages, salaries and maintenance of personnel and equipment incurred in connection with such request. Nothing contained herein shall prevent any responding Party from assuming such loss, damage, expense or other cost or from donating such services to the receiving Party without charge or cost.
  
   

Providing reimbursement after a prescribed period of donated aid:

• No charges will be levied by a responding Party to this Agreement unless assistance continues for a period of more than 48 hours. If assistance provided under this agreement continues for more than 48 hours, the Responding Party will submit to the Requesting Party an itemized bill for the actual cost of any assistance provided after the initial 48 hour period, including salaries, overtime, materials and supplies and other necessary expenses; and the requesting Party will reimburse the Party providing the assistance for that amount. Charges are not contingent upon the availability of federal government funds.