Medicare Update: New Bill Would Increase Payments Impacting EMS
The bill would require CMS to regularly update Medicare's ambulance fee schedule using current cost data.
The RESCUE Act of 2026, introduced by Representative August Pfluger, aims to overhaul Medicare’s ambulance payment system to better support emergency medical services (EMS) agencies, particularly in rural communities. Currently, Medicare uses outdated reimbursement rates based on data from 1998, failing to account for significant changes in labor, fuel, and equipment costs over the years.
This has led to ambulance agencies being paid more than $1,500 less than their actual costs per transport on average, as reported by the 2024 RAND Corporation. The bill seeks to address this issue by requiring the Centers for Medicare & Medicaid Services (CMS) to regularly update ambulance fee schedules using current cost data, beginning in 2028.
Additionally, the RESCUE Act would require comprehensive reviews of payment rates every three years and increase annual payment amounts using inflation adjustments. The legislation also expands Medicare ambulance data reporting requirements, including for air ambulance providers. By aligning cost increases with the services provided, the bill aims to ensure that EMS agencies can maintain adequate capacity and staffing, ultimately benefiting beneficiaries through improved access to emergency medical services.
Brief written by urgent.news from Newsweek's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
