Medicare Benefit Policy Manual (Pub. 100-02), Ch. 10 § 10.4.6
Special Payment Limitations
10.4.6 - Special Payment Limitations
(Rev. 133, Issued: 10-22-10, Effective: 01-01-11, Implementation: 01-03-11)
If a determination is made to order transport by air ambulance, but ground ambulance
transport would have sufficed, payment for the air ambulance transport is based on the
amount payable for ground ambulance transport.
If the air transport was medically appropriate (that is, ground transportation was
contraindicated, and the beneficiary required air transport to a hospital), but the
beneficiary could have been treated at a hospital nearer than the one to which they were
transported, the air transport payment is limited to the rate for the distance from the point
of pickup to that nearer hospital.