Medicare Update: New Bill Would Increase Payments Impacting EMS

A bipartisan bill proposed in the House of Representatives, called the Reimbursing Emergency Services for Critical Urgent Encounters (RESCUE) Act of 2026, aims to revise how Medicare compensates ambulance providers. This legislation seeks to alleviate financial burdens on emergency medical services (EMS) agencies in rural areas.

Representative August Pfluger (TX-11) emphasized the significance of this issue, particularly in rural communities where a lack of funding could lead to the closure of EMS agencies. The bill mandates the Centers for Medicare & Medicaid Services (CMS) to frequently revise Medicare's ambulance fee schedule based on current cost information instead of outdated rates from previous decades.

A 2024 RAND Corporation report revealed that ambulance agencies receive approximately $1,500 less than their expenses per transport on average. Medicare's reimbursement framework has remained relatively constant since 2002, relying on cost data gathered in 1998 despite significant shifts in labor, fuel, and equipment expenses. The RESCUE Act would update Medicare's ambulance payment system by obligating CMS to regularly update reimbursement rates using current cost data, with revised rates set to begin in 2028 and comprehensive reviews of ambulance payment rates required every three years.

The legislation would also enhance annual payment adjustments using inflation adjustments and broaden Medicare ambulance data reporting requirements, including for air ambulance providers. The bill, introduced by Pfluger, a Republican from Texas, and a coalition of bipartisan lawmakers, has been assigned to the House Energy and Commerce Committee and the House Ways and Means Committee for consideration. Once approved by these committees, the RESCUE Act would proceed to the House floor for voting.