On January 22, HCFA published a notice in the Federal Register announcing the creation of a negotiated rulemaking committee to establish a Medicare ambulance fee schedule. The fee schedule, using new authority established in the BBA 97, replaces the system of reimbursing suppliers based on their charges or costs, which gives them little incentive for efficiency with a system that pays them a set amount based on the service provided.
"The new ambulance coverage rule and the creation of an ambulance fee schedule will improve the quality of services for beneficiaries, while helping to ensure that Medicare pays only for needed ambulance services," HCFA Administrator Nancy-Ann DeParle said.