Medicare Benefit Policy Manual (Pub. 100-02), Ch. 10 § 30
Implementation of the Ambulance Fee Schedule
30 - Implementation of the Ambulance Fee Schedule
(Rev. 103; Issued: 02-20-09; Effective Date: 01-05-09; Implementation Date: 03-
20-09)
The Medicare program ambulance fee schedule (FS) is effective for ambulance items and
services furnished on or after April 1, 2002. Under the FS, payment for ambulance
services covered under the program is based on the lower of the actual billed amount or
the ambulance fee schedule amount.
The fee schedule was phased in over a 5-year period. The fee schedule replaced the
retrospective reasonable cost reimbursement system for providers and the reasonable
charge system for ambulance suppliers. During the transition period, payment was based
on a blend of the FS amount and the amount under its current billing methodology.
The fee schedule applies to all ambulance services, including volunteer,
municipal, private, independent, and institutional providers, i.e., hospitals, skilled
nursing facilities and home health agencies covered under Medicare Part B,
except for services furnished by certain critical access hospitals (CAH). Payment
for ambulance items and services furnished by a CAH, or by an entity that is
owned and operated by a CAH, is based on reasonable cost if the CAH or entity is
the only provider or supplier of ambulance services that is located within a 35-
mile drive of such CAH. The provision is effective for ambulance services
furnished on or after December 21, 2000.