Medicare Claims Processing Manual (Pub. 100-04), Ch. 15 § 30.2.3
Indian Health Service (IHS)/Tribal Billing
30.2.3 - Indian Health Service (IHS)/Tribal Billing
(Rev. 2102, Issued: 11-19-10, Effective: 04-01-11, Implementation: 04-04-11)
Ambulance services furnished by IHS/Tribal hospitals including Critical Access Hospitals
(CAHs) will be paid according to the appropriate payment methodology.
For dates of service on or after December 21, 2000 and prior to January 1, 2004, medically
necessary ambulance services furnished by an IHS/Tribal CAH or by an entity that is owned and
operated by an IHS/Tribal CAH are paid based on 100 percent of the reasonable cost if the 35
mile rule for cost-based payment is met. In order for the 35 mile rule to be met, the IHS/Tribal
CAH or the entity that is owned and operated by the IHS/Tribal CAH, must be the only provider
or supplier of ambulance services that is located within a 35 mile drive of the IHS/Tribal CAH or
the entity. Those CAHs that meet the 35 mile rule for cost-based payment shall report condition
code B2 (CAH ambulance attestation) on their bills.
For dates of service on or after January 1, 2004, ambulance services furnished by an IHS/Tribal
CAH or by an entity that is owned and operated by an IHS/Tribal CAH are paid based on 101
percent of the reasonable cost if the 35 mile rule for cost-based payment is met.
When the 35 mile rule for cost-based payment is not met, the IHS/Tribal CAH ambulance
service or the ambulance service furnished by the entity that is owned and operated by the
IHS/Tribal CAH is paid based on the ambulance fee schedule.
Other IHS/Tribal hospital based ambulance services are reimbursed based on the ambulance fee
schedule.