Medicare Claims Processing Manual

Medicare Claims Processing Manual
Chapter 15 - Ambulance
Table of Contents
(Rev. 3800, 06-23-17)
Transmittals for Chapter 15

10 - Overview
10.1 - Authorities
10.1.1 - Statutes And Regulations
10.1.2 - Other References to Ambulance Related Policies in the CMS Internet
Only Manuals
10.2 - Summary of the Benefit
10.3 - Definitions
10.4 - Additional Introductory Guidelines
20 - Payment Rules
20.1 - Payment Under the Ambulance Fee Schedule
20.1.1 - General
20.1.2 - Jurisdiction
20.1.3 - Services Provided
20.1.4 - Components of the Ambulance Fee Schedule
20.1.5 - ZIP Code Determines Fee Schedule Amounts
20.1.5.1 - CMS Supplied National ZIP Code File and National Ambulance
Fee Schedule File
20.1.6 - Contractor Determination of Fee Schedule Amounts
20.2 - Payment for Mileage Charges
20.3 - Air Ambulance
20.4 - Ambulance Inflation Factor (AIF)
20.5 - Documentation Requirements
20.6 - Payment for Non-Emergency BLS Trips to/from ESRD Facilities
30 - General Billing Guidelines
30.1 - Multi-Carrier System (MCS) Guidelines
30.1.1 - MCS Coding Requirements for Suppliers
30.1.2 - Coding Instructions for Paper and Electronic Claim Forms
30.1.3 - Coding Instructions for Form CMS-1491
30.1.4 - CWF Editing of Ambulance Claims for Inpatients
30.2 - Fiscal Intermediary Shared System (FISS) Guidelines
30.2.1 - A/B MAC (A) Bill Processing Guidelines Effective April 1, 2002, as a
Result of Fee Schedule Implementation
30.2.2 - SNF Billing
30.2.3 - Indian Health Services/Tribal Billing
30.2.4 - Non-covered Charges on Institutional Ambulance Claims
40 - Medical Conditions List and Instructions
10 - Overview
(Rev. 1696; Issued: 03-06-09; Effective/Implementation Date: 04-06-09)
10.1 - Authorities
10.1.1 - Statutes and Regulations

Section 1861(s) (7) of the Social Security Act (Act) establishes an ambulance service as a
Medicare Part B service. Payment for ambulance services is addressed at 1834(l) of the Act.
Coverage rules are addressed at 42 Code of Federal Regulations (CFR) 410.40. Additional
rules, including rules regarding vehicular and staffing requirements, are specified at 42 CFR
410.41. Payment rules under the fee schedule established in 2002 are specified at 42 CFR Part
414, Subpart H (414.601 et seq.). Payment rules for ambulances services furnished by a critical
access hospital (CAH) or by an entity owned and operated by a CAH are specified at 42 CFR
413.70(b)(5). Other general Medicare provisions apply to ambulance services. See Title XVIII
of the Act and 42 CFR Parts 400 to 429 to determine applicability.
10.1.2 - Other References to Ambulance Related Policies in the CMS Internet

Only Manuals (IOM)
Coverage: Manual instructions regarding coverage of ambulance services, including

specifications for vehicular and staffing requirements, are specified in the Internet-Only Manual
(IOM), Pub. 100-02, Medicare Benefit Policy Manual, chapter 10.
Medical Review: Manual instructions regarding medical review for ambulance services are
specified in the IOM, Pub.100-08, Medicare Program Integrity Manual, chapter 6.
Payment and Claims Processing: This chapter restates previously issued instructions to Medicare
fee-for-service claim processing contractors for processing claims under the Part B ambulance
fee schedule (FS). For historical reference, refer to http://www.cms.gov/Medicare/Medicare-
Fee-for-Service-Payment/AmbulanceFeeSchedule/index.html on the CMS website to view the
previous version of this chapter.
10.2 - Summary of the Benefit

Ambulance services are covered under Medicare Part B. However, a Part B payment for an
ambulance service furnished to a Medicare beneficiary is available only if the following,
fundamental conditions are met:
Actual transportation of the beneficiary occurs.

The beneficiary is transported to an appropriate destination.
The transportation by ambulance must be medically necessary, i.e., the beneficiarys

medical condition is such that other forms of transportation are medically
contraindicated.
The ambulance provider/supplier meets all applicable vehicle, staffing, billing, and
reporting requirements.
The transportation is not part of a Part A service.
Other requirements specified in this chapter or in the above-cited CMS Manuals may also apply
to the provider/supplier or to a particular transport or billing.
10.3 - Definitions
(Rev. 3076, Issued: 09-24-14, Effective: Upon Implementation of ICD-10 ASC X12: 01-01-
12, Implementation: ICD-10: Upon Implementation of ICD-10 ASC X12: 09-16-14)
Most of the definitions previously found in this chapter can now be found in IOM Pub. 100-02,
Medicare Benefit Policy Manual, chapter 10 - Ambulance Services. Other definitions pertaining
to payment and claims processing follow.
A/B MAC (A)
Definition: For the purposes of this chapter only, the term refers to those contractors that process
claims for institutionally-based ambulance providers billed on the ASC X12 837 institutional
claim transaction or Form CMS-1450.
A/B MAC (B)
Definition: For the purposes of this chapter only, the term refers to those contractors that process
claims for ambulance suppliers billed on the ASC X12 837professional claim transaction or a
CMS-1500 form.
Date of Service
Definition: The date of service (DOS) of an ambulance service is the date that the loaded
ambulance vehicle departs the point of pickup. In the case of a ground transport, if the
beneficiary is pronounced dead after the vehicle is dispatched but before the (now deceased)
beneficiary is loaded into the vehicle, the DOS is the date of the vehicles dispatch. In the case
of an air transport, if the beneficiary is pronounced dead after the aircraft takes off to pick up the
beneficiary, the DOS is the date of the vehicles takeoff.
Point of Pickup (POP)

Definition: Point of pickup is the location of the beneficiary at the time he or she is placed on
board the ambulance.
Application: The ZIP Code of the POP must be reported on each claim for ambulance services
so that the correct Geographic Adjustment Factor (GAF) and Rural Adjustment Factor (RAF)
may be applied, as appropriate.
Provider
Definition: For the purposes of this chapter only, the term provider is used to reference a
hospital-based ambulance provider which is owned and/or operated by a hospital, critical access
hospital, skilled nursing facility, comprehensive outpatient rehabilitation facility, home health
agency, hospice program, or, for purposes of section 1814(g) and section 1835(e), a fund.
Supplier
Definition: For the purposes of this chapter, the term supplier is defined as any ambulance
service that is not institutionally based. A supplier can be an independently owned and operated
ambulance service company, a volunteer fire and/or ambulance company, a local government run
firehouse based ambulance, etc., that provides Part B Medicare covered ambulance services and
is enrolled as an independent ambulance supplier.
10.4 - Additional Introductory Guidelines

(Rev. 3481, Issued: 03-18-16. Effective: 06-20-16, Implementation: 06-20-16)
Since April 1, 2002 (the beginning of the transition to the full implementation of the ambulance
fee schedule), payment for a medically necessary ambulance service is based on the level of
service provided, not on the vehicle used.
Ambulance services are separately reimbursable only under Part B. Once a beneficiary is
admitted to a hospital, Critical Access Hospitals (CAH), or Skilled Nursing Facility (SNF), it
may be necessary to transport the beneficiary to another hospital or other site temporarily for
specialized care while the beneficiary maintains inpatient status with the original provider. This
movement of the patient is considered patient transportation and is covered as an inpatient
hospital or CAH service under Part A and as a SNF service when the SNF is furnishing it as a
covered SNF service and Part A payment is made for that service. Because the service is
covered and payable as a beneficiary transportation service under Part A, the service cannot be
classified and paid for as an ambulance service under Part B. This includes intra-campus
transfers between different departments of the same hospital, even where the departments are
located in separate buildings. Such intra-campus transfers are not separately payable under the
Part B ambulance benefit. Such costs are accounted for in the same manner as the costs of such
a transfer within a single building. See IOM Pub. 100-02, Medicare Benefit Policy Manual,
chapter 10 - Ambulance Services, section 10.3.3 - Separately Payable Ambulance Transport
Under Part B Versus Patient Transportation that is Covered Under a Packaged Institutional
Service for further details. Refer to IOM Pub. 100-04, Medicare Claims Processing Manual,
chapter 3 - Inpatient Hospital Billing, section 10.5 - Hospital Inpatient Bundling for additional
information on hospital inpatient bundling of ambulance services. Refer to IOM Pub. 100-04,
Medicare Claims Processing Manual, chapter 3 - Inpatient Hospital Billing for the definitions of
an inpatient for the various inpatient facility types. All Prospective Payment Systems (PPS) have
a different criteria for determining when ambulance services are payable (i.e., during an
interrupted stay, on date of admission and date of discharge).
NOTE: The cost of oxygen and its administration in connection with and as part of the
ambulance service is covered. Under the ambulance FS, oxygen and other items and services
provided as part of the transport are included in the FS base payment rate and are NOT
separately payable.
The A/B MAC (A) is responsible for the processing of claims for ambulance services furnished
by a hospital based ambulance or for ambulance services provided by a supplier if provided
under arrangements for an inpatient. The A/B MAC (B) is responsible for processing claims
from suppliers; i.e., those entities that are not owned and operated by a provider. See section
10.2 below for further clarification of the definition of Providers and Suppliers of ambulance
services.
Effective December 21, 2000, ambulance services furnished by a CAH or an entity that is owned
and operated by a CAH are paid on a reasonable cost basis, but only if the CAH or entity is the
only provider or supplier of ambulance services located within a 35-mile drive of such CAH or
entity. Beginning February 24, 1999, ambulance transports to or from a non-hospital-based
dialysis facility, origin and destination modifier J, satisfy the programs origin and destination
requirements for coverage.
Ambulance supplier services furnished under arrangements with a provider, e.g., hospital or SNF
are typically not billed by the supplier to its A/B MAC (B), but are billed by the provider to its
A/B MAC (A). The A/B MAC (A) is responsible for determining whether the conditions
described below are met. In cases where all or part of the ambulance services are billed to the
A/B MAC (B), the A/B MAC (B) has this responsibility, and the A/B MAC (A) shall contact the
A/B MAC (B) to ascertain whether it has already determined if the crew and ambulance
requirements are met. In such a situation, the A/B MAC (A) should accept the A/B MAC (B)s
determination without pursuing its own investigation.
Where a provider furnishes ambulance services under arrangements with a supplier of ambulance
services, such services can be covered only if the suppliers vehicles and crew meet the
certification requirements applicable for independent ambulance suppliers.
Effective January 1, 2006, items and services which include but are not limited to oxygen, drugs,
extra attendants, supplies, EKG, and night differential are no longer paid separately for
ambulance services. This occurred when CMS fully implemented the Ambulance Fee Schedule,
and therefore, payment is based solely on the ambulance fee schedule.
Effective for claims on or after October 1, 2007, if ambulance claims submitted with a code(s)
that is/are not separately billable the payment for the code(s) is included in the base rate.
Contractors shall use the following remittance advice messages and associated codes when
rejecting/denying claims under this policy. This CARC/RARC combination is compliant with
CAQH CORE Business Scenario Four.
Group Code: CO
CARC: 97
RARC: N390
MSN: 1.6
This is true whether the primary transportation service is allowed or denied. When the service is
denied, the services are not separately billable to the beneficiaries as they are already part of the
base rate.
Payment for ambulance services may be made only on an assignment related basis.
Prospective payment systems, including the Ambulance Fee Schedule, are exempt from Inherent
Reasonableness provisions.
20 - Payment Rules
B3-4115, 5116, PM AB-02-131
Medicare covered ambulance services are paid based on the Medicare ambulance fee schedule.
The following subsections describe how contractors calculate the payment amount. Section 20.1
and its subsections describe how the payment amount is calculated for the fee schedule. The
other subsections in 20 provide information on certain components of the payment amount
(e.g., mileage) or specialized payment amounts (e.g., air ambulance).
20.1 - Payment Under the Ambulance Fee Schedule

20.1.1 - General
Payment under the fee schedule for ambulance services:
Includes a base rate payment plus a separate payment for mileage;
Covers both the transport of the beneficiary to the nearest appropriate facility and all
items and services associated with such transport; and
Does not include a separate payment for items and services furnished under the
ambulance benefit.
Payment for items and services is included in the fee schedule payment. Such items and services
include but are not limited to oxygen, drugs, extra attendants, and EKG testing (e.g., ancillary
services) - but only when such items and services are both medically necessary and covered by
Medicare under the ambulance benefit.
For additional information on the fee schedule, contractors may refer to the Ambulance
Services Center on the CMS Web site at http://www.cms.gov/Medicare/Medicare-Fee-for-
Service-Payment/AmbulanceFeeSchedule/index.html
20.1.2 - Jurisdiction
Claims jurisdiction for suppliers is considered to be where the ambulance vehicle is garaged or
hangared. Claims jurisdiction for institutional based providers is based on the primary location
of the institution.
20.1.3 - Services Provided

AB-03-106
Payment is based on the level of service provided, not on the vehicle used. Occasionally, local
jurisdictions require the dispatch of an ambulance that is above the level of service that ends up
being provided to the Medicare beneficiary. In this, as in most instances, Medicare pays only for
the level of service provided, and then only when the service provided is medically necessary.
20.1.4 - Components of the Ambulance Fee Schedule

(Rev. 3800, Issued: 06-23-17, Effective: 07-25-17, Implementation: 07-25-17)
The mileage rates provided in this section are the base rates that are adjusted by the yearly
ambulance inflation factor (AIF). The payment amount under the fee schedule is determined as
follows:
For ground ambulance services, the fee schedule amount includes:
1. A money amount that serves as a nationally uniform base rate, called a conversion
factor (CF), for all ground ambulance services;
2. A relative value unit (RVU) assigned to each type of ground ambulance service;
3. A geographic adjustment factor (GAF) for each ambulance fee schedule locality area
(geographic practice cost index (GPCI));
4. A nationally uniform loaded mileage rate;
5. An additional amount for certain mileage for a rural point-of-pickup; and

6. For specified temporary periods, certain additional payment amounts as described in
section 20.1.4A, below.
For air ambulance services, the fee schedule amount includes:
1. A nationally uniform base rate for fixed wing and a nationally uniform base rate for
rotary wing;
2. A geographic adjustment factor (GAF) for each ambulance fee schedule locality area
(GPCI);
3. A nationally uniform loaded mileage rate for each type of air service; and
4. A rural adjustment to the base rate and mileage for services furnished for a rural point-
of-pickup.
A. Ground Ambulance Services
1. Conversion Factor
The conversion factor (CF) is a money amount used to develop a base rate for each
category of ground ambulance service. The CF is updated annually by the ambulance
inflation factor and for other reasons as necessary.
2. Relative Value Units
Relative value units (RVUs) set a numeric value for ambulance services relative to the
value of a base level ambulance service. Since there are marked differences in resources
necessary to furnish the various levels of ground ambulance services, different levels of
payment are appropriate for the various levels of service. The different payment amounts
are based on level of service. An RVU expresses the constant multiplier for a particular
type of service (including, where appropriate, an emergency response). An RVU of 1.00
is assigned to the BLS of ground service, e.g., BLS has an RVU of 1; higher RVU values
are assigned to the other types of ground ambulance services, which require more service
than BLS.
The RVUs are as follows:
Service Level RVU

BLS 1.00
BLS - Emergency 1.60
ALS1 1.20
ALS1- Emergency 1.90
ALS2 2.75
SCT 3.25
PI 1.75
3. Geographic Adjustment Factor (GAF)
The GAF is one of two factors intended to address regional differences in the cost of furnishing
ambulance services. The GAF for the ambulance FS uses the non-facility practice expense (PE)
of the geographic practice cost index (GPCI) of the Medicare physician fee schedule to adjust
payment to account for regional differences. Thus, the geographic areas applicable to the
ambulance FS are the same as those used for the physician fee schedule.
The location where the beneficiary was put into the ambulance (POP) establishes which GPCI
applies. For multiple vehicle transports, each leg of the transport is separately evaluated for the
applicable GPCI. Thus, for the second (or any subsequent) leg of a transport, the POP
establishes the applicable GPCI for that portion of the ambulance transport.
For ground ambulance services, the applicable GPCI is multiplied by 70 percent of the base rate.
Again, the base rate for each category of ground ambulance services is the CF multiplied by the
applicable RVU. The GPCI is not applied to the ground mileage rate.
4. Mileage
In the context of all payment instructions, the term mileage refers to loaded mileage. The
ambulance FS provides a separate payment amount for mileage. The mileage rate per statute
mile applies for all types of ground ambulance services, except Paramedic Intercept, and is
provided to all Medicare contractors electronically by CMS as part of the ambulance FS.
Providers and suppliers must report all medically necessary mileage, including the mileage
subject to a rural adjustment, in a single line item.
5. Adjustment for Certain Ground Mileage for Rural Points of Pickup (POP)
The payment rate is greater for certain mileage where the POP is in a rural area to account for the
higher costs per ambulance trip that are typical of rural operations where fewer trips are made in
any given period.
If the POP is a rural ZIP Code, the following calculations should be used to determine the rural
adjustment portion of the payment allowance. For loaded miles 1-17, the rural adjustment for
ground mileage is 1.5 times the rural mileage allowance.
For services furnished during the period July 1, 2004 through December 31, 2008, a 25 percent
increase is applied to the appropriate ambulance FS mileage rate to each mile of a transport (both
urban and rural POP) that exceeds 50 miles (i.e., mile 51 and greater).
The following chart summarizes the above information:
Service Dates of Service Bonus Calculation

Loaded miles 1-17, Beginning 4/1/02 50% FS Rural mileage *
Rural POP 1.5
Service Dates of Service Bonus Calculation
Loaded miles 18- 4/1/02 - 12/31/03 25% FS Rural mileage *
50, Rural POP 1.25
All loaded miles 7/1/04 - 12/31/08 25% FS Urban or Rural
(Urban or Rural mileage * 1.25
POP) 51+
The POP, as identified by ZIP Code, establishes whether a rural adjustment applies to a
particular service. Each leg of a multi-leg transport is separately evaluated for a rural adjustment
application. Thus, for the second (or any subsequent) leg of a transport, the ZIP Code of the
POP establishes whether a rural adjustment applies to such second (or subsequent) transport.
For the purpose of all categories of ground ambulance services except paramedic intercept, a
rural area is defined as a U.S. Postal Service (USPS) ZIP Code that is located, in whole or in
part, outside of either a Metropolitan Statistical Area (MSA) or in New England, a New England
County Metropolitan Area (NECMA), or is an area wholly within an MSA or NECMA that has
been identified as rural under the Goldsmith modification. (The Goldsmith modification
establishes an operational definition of rural areas within large counties that contain one or more
metropolitan areas. The Goldsmith areas are so isolated by distance or physical features that they
are more rural than urban in character and lack easy geographic access to health services.)
For Paramedic Intercept, an area is a rural area if:
It is designated as a rural area by any law or regulation of a State;

It is located outside of an MSA or NECMA; or
It is located in a rural census tract of an MSA as determined under the most recent
Goldsmith modification.
See IOM Pub. 100-02, Medicare Benefit Policy Manual, chapter 10 - Ambulance Services,
section 30.1.1 - Ground Ambulance Services for coverage requirements for the Paramedic
Intercept benefit. Presently, only the State of New York meets these requirements.
Although a transport with a POP located in a rural area is subject to a rural adjustment for
mileage, Medicare still pays the lesser of the billed charge or the applicable FS amount for
mileage. Thus, when rural mileage is involved, the contractor compares the calculated FS rural
mileage payment rate to the providers/suppliers actual charge for mileage and pays the lesser
amount.
The CMS furnishes the ambulance FS files to claims processing contractors electronically. A
version of the Ambulance Fee Schedule is also posted to the CMS website
(http://www.cms.gov/Medicare/Medicare-Fee-for-Service-
Payment/AmbulanceFeeSchedule/afspuf.html ) for public consumption. To clarify whether a
particular ZIP Code is rural or urban, please refer to the most recent version of the Medicare
supplied ZIP Code file.
6. Regional Ambulance FS Payment Rate Floor for Ground Ambulance Transports

For services furnished during the period July 1, 2004 through December 31, 2009, the base rate
portion of the payment under the ambulance FS for ground ambulance transports is subject to a
minimum amount. This minimum amount depends upon the area of the country in which the
service is furnished. The country is divided into 9 census divisions and each of the census
divisions has a regional FS that is constructed using the same methodology as the national FS.
Where the regional FS is greater than the national FS, the base rates for ground ambulance
transports are determined by a blend of the national rate and the regional rate in accordance with
the following schedule:
Year National FS Regional FS

Percentage Percentage
7/1/04 - 12/31/04 20% 80%
CY 2005 40% 60%
CY 2006 60% 40%
CY 2007 - CY 2009 80% 20%
CY 2010 and thereafter 100% 0%
Where the regional FS is not greater than the national FS, there is no blending and only the
national FS applies. Note that this provision affects only the FS portion of the blended transition
payment rate. This floor amount is calculated by CMS centrally and is incorporated into the FS
amount that appears in the FS file maintained by CMS and downloaded by CMS contractors.
There is no calculation to be done by the MAC in order to implement this provision.
7. Adjustments for FS Payment Rate for Certain Rural Ground Ambulance Transports
For services furnished during the period July 1, 2004 through December 31, 2010, the base rate
portion of the payment under the FS for ground ambulance transports furnished in certain rural
areas is increased by a percentage amount determined by CMS. Section 3105 (c) and 10311 (c)
of the Affordable Care Act amended section 1834 (1) (13) (A) of the Act to extend this rural
bonus for an additional year through December 31, 2010. This increase applies if the POP is in a
rural county (or Goldsmith area) that is comprised by the lowest quartile by population of all
such rural areas arrayed by population density. CMS will determine this bonus amount and the
designated POP rural ZIP Codes in which the bonus applies. Beginning on July 1, 2004, rural
areas qualifying for the additional bonus amount will be identified with a B indicator on the
national ZIP Code file. Contractors must apply the additional rural bonus amount as a multiplier
to the base rate portion of the FS payment for all ground transports originating in the designated
POP ZIP Codes.
Subsequently, section of 106 (c) of the MMEA again amended section 1843 (l) (13) (A) of the
Act to extend the rural bonus an additional year, through December 31, 2011.
8. Adjustments for FS Payment Rates for Ground Ambulance Transports
The payment rates under the FS for ground ambulance transports (both the fee schedule base
rates and the mileage amounts) are increased for services furnished during the period July 1,
2004 through December 31, 2006 as well as July 1, 2008 through December 31, 2010. For
ground ambulance transport services furnished where the POP is urban, the rates are increased
by 1 percent for claims with dates of service July 1, 2004 through December 31, 2006 in
accordance with Section 414 of the Medicare Modernization Act (MMA) of 2003 and by 2
percent for claims with dates of service July 1, 2008 through December 31, 2010 in accordance
with Section 146(a) of the Medicare Improvements for Patients and Providers Act of 2008 and
Sections 3105(a) and 10311(a) of the Patient Protection and Affordable Care Act (ACA) of
2010. For ground ambulance transport services furnished where the POP is rural, the rates are
increased by 2 percent for claims with dates of service July 1, 2004 through December 31, 2006
in accordance with Section 414 of the Medicare Modernization Act (MMA) of 2003 and by 3
percent for claims with dates of service July 1, 2008 through December 31, 2010 in accordance
with Section 146(a) of the Medicare Improvements for Patients and Providers Act of 2008 and
Sections 3105(a) and 10311(a) of the Patient Protection and Affordable Care Act (ACA) of
2010. Subsequently, section 106 (a) of the Medicare and Medicaid Extenders Act of 2010
(MMEA) again amended section 1834 (1) (12) (A) of the Act to extend the payment increases
for an additional year, through December 31, 2011. These amounts are incorporated into the fee
schedule amounts that appear in the Ambulance FS file maintained by CMS and downloaded by
CMS contractors. There is no calculation to be done by the MAC in order to implement this
provision.
The following chart summarizes the Medicare Prescription Drug, Improvement, and
Modernization Act (MMA) of 2003 payment changes for ground ambulance services that
became effective on July 1, 2004 as well as the Medicare Improvement for Patients and
Providers Act (MIPPA) of 2008 changes that became effective July 1, 2008 and were extended
by the Patient Protection and Affordable Care Act of 2010 and the Medicare and Medicaid
Extenders Act of 2010 (MMEA).
Summary Chart of Additional Payments for Ground Ambulance Services Provided by MMA,
MIPPA and MMEA
Service Effective Dates Payment

Increase*
All rural miles 7/1/04 - 12/31/06 2%
All rural miles 7/1/08 - 12/31/11 3%
Rural miles 51+ 7/1/04 - 12/31/08 25% **
All urban miles 7/1/04 - 12/31/06 1%
All urban miles 7/1/08 - 12/31/11 2%
Urban miles 51+ 7/1/04 - 12/31/08 25% **
All rural base rates 7/1/04 - 12/31/06 2%

All rural base rates 7/1/08 - 12/31/11 3%
Rural base rates (lowest quartile) 7/1/04 - 12/31/11 22.6 %**
All urban base rates 7/1/04 - 12/31/06 1%
All urban base rates 7/1/08 - 12/31/11 2%
All base rates (regional fee 7/1/04 - 12/31/09 Floor
schedule blend)
NOTES: * All payments are percentage increases and all are cumulative.
**Contractor systems perform this calculation. All other increases are incorporated into the
CMS Medicare Ambulance FS file.
B. Air Ambulance Services
1. Base Rates
Each type of air ambulance service has a base rate. There is no conversion factor (CF)
applicable to air ambulance services.
2. Geographic Adjustment Factor (GAF)
The GAF, as described above for ground ambulance services, is also used for air ambulance
services. However, for air ambulance services, the applicable GPCI is applied to 50 percent of
each of the base rates (fixed and rotary wing).
3. Mileage
The FS for air ambulance services provides a separate payment for mileage.
4. Adjustment for Services Furnished in Rural Areas
The payment rates for air ambulance services where the POP is in a rural area are greater than in
an urban area. For air ambulance services (fixed or rotary wing), the rural adjustment is an
increase of 50 percent to the unadjusted FS amount, e.g., the applicable air service base rate
multiplied by the GAF plus the mileage amount or, in other words, 1.5 times both the applicable
air service base rate and the total mileage amount.
The basis for a rural adjustment for air ambulance services is determined in the same manner as
for ground services. That is, whether the POP is within a rural ZIP Code as described above for
ground services.
20.1.5 - ZIP Code Determines Fee Schedule Amounts

The POP determines the basis for payment under the FS, and the POP is reported by its 5-digit
ZIP Code. Thus, the ZIP Code of the POP determines both the applicable GPCI and whether a
rural adjustment applies. If the ambulance transport required a second or subsequent leg, then
the ZIP Code of the POP of the second or subsequent leg determines both the applicable GPCI
for such leg and whether a rural adjustment applies to such leg. Accordingly, the ZIP Code of
the POP must be reported on every claim to determine both the correct GPCI and, if applicable,
any rural adjustment. Part B contractors must report the POP ZIP Code, at the line item level, to
CWF when they report all other ambulance claim information. CWF must report the POP ZIP
Code to the national claims history file, along with the rest of the ambulance claims record.
A. No ZIP Code
In areas without an apparent ZIP Code, it is the providers/suppliers responsibility to confirm

that the POP does not have a ZIP Code that has been assigned by the USPS. If the
provider/supplier has made a good-faith effort to confirm that no ZIP Code for the POP exists, it
may use the ZIP Code nearest to the POP.
Providers and suppliers should document their confirmation with the USPS, or other
authoritative source, that the POP does not have an assigned ZIP Code and annotate the claim to
indicate that a surrogate ZIP Code has been used (e.g., Surrogate ZIP Code; POP in No-ZIP).
Providers and suppliers should maintain this documentation and provide it to their contractor
upon request.
Contractors must request additional documentation from providers/suppliers when a claim

submitted using a surrogate ZIP Code does not contain sufficient information to determine that
the ZIP Code does not exist for the POP. They must investigate and report any claims submitted
with an inappropriate and/or falsified surrogate ZIP Code.
If the ZIP Code entered on the claim is not in the CMS-supplied ZIP Code File, manually verify
the ZIP Code to identify a potential coding error on the claim or a new ZIP Code established by
the U.S. Postal Service (USPS). ZIP Code information may be found at the USPS Web site at
http://www.usps.com/, or other commercially available sources of ZIP Code information may be
consulted.
If this process validates the ZIP Code, the claim may be processed. All such ZIP Codes
are to be considered urban ZIP Codes until CMS determines that the code should be
designated as rural, unless the contractor exercises its discretion to designate the ZIP
Code as rural. (See Section 20.1.5.B New ZIP Codes)
If this process does not validate the ZIP Code, the claim must be rejected as
unprocessable.
The contractor shall use the following remittance advice messages and associated codes when
CAQH CORE Business Scenario Two
Group Code: CO
CARC: 16
RARC: N53
MSN: N/A
B. New ZIP Codes

New ZIP Codes are considered urban until CMS determines that the ZIP Code is located in a
rural area. Thus, until a ZIP Code is added to the Medicare ZIP Code file with a rural
designation, it will be considered an urban ZIP Code. However, despite the default designation
of new ZIP Codes as urban, contractors have discretion to determine that a new ZIP Code is rural
until designated otherwise. If the contractor designates a new ZIP Code as rural, and CMS later
changes the designation to urban, then the contractor, as well as any provider or supplier paid for
mileage or for air services with a rural adjustment, will be held harmless for this adjustment.
Providers and suppliers should annotate claims using a new ZIP Code with a remark to that
effect. Providers and suppliers should maintain documentation of the new ZIP Code and provide
it to their contractor upon request.
If the provider or supplier believes that a new ZIP Code that the contractor has designated as
urban should be designated as rural (under the standard established by the Medicare FS
regulation), it may request an adjustment from the A/B MAC (A) or appeal the determination
with the A/B/MAC (B), as applicable, in accordance with standard procedures.
When processing a claim with a POP ZIP Code that is not on the Medicare ZIP Code file,
contractors must search the USPS Web site at http://www.usps.com/, other governmental Web
sites, and commercial Web sites, to validate the new ZIP Code. (The Census Bureau Web site
located at http://www.census.gov/ contains a list of valid ZIP Codes.) If the ZIP Code cannot be
validated using the USPS Web site or other authoritative source such as the Census Bureau Web
site, reject the claim as unprocessable.
C. Inaccurate ZIP Codes
If providers and suppliers knowingly and willfully report a surrogate ZIP Code because they do
not know the proper ZIP Code, they may be engaging in abusive and/or potentially fraudulent
billing. Furthermore, a provider or supplier that specifies a surrogate rural ZIP Code on a claim
when not appropriate to do so for the purpose of receiving a higher payment than would have
been paid otherwise, may be committing abuse and/or potential fraud.
D. Claims Outside of the U.S.
The following policy applies to claims outside of the U.S.:
Ground transports with pickup and drop off points within Canada or Mexico will be paid
at the fee associated with the U.S. ZIP Code that is closest to the POP;
For water transport from the territorial waters of the U.S., the fee associated with the U.S.
port of entry ZIP Code will be paid;
Ground transports with pickup within Canada or Mexico to the U.S. will be paid at the
fee associated with the U.S. ZIP Code at the point of entry; and
Fees associated with the U.S. border port of entry ZIP Codes will be paid for air transport
from areas outside the U.S. to the U.S. for covered claims.
As discussed more fully below, CMS will provide contractors with a file of ZIP Codes that will
map to the appropriate geographic location and, where appropriate, with a rural designation
identified with the letter R or B. Urban ZIP Codes are identified with a blank in this
position.
20.1.5.1 - CMS Supplied National ZIP Code File and National Ambulance Fee
Schedule File
CMS will provide each contractor with two files: a national ZIP Code file and a national
Ambulance FS file.
A. The national ZIP5 Code file is a file of 5-digit USPS ZIP Codes that will map each ZIP Code
to the appropriate FS locality. Every 2 months, CMS obtains an updated listing of ZIP Codes
from the USPS. On the basis of the updated USPS file, CMS updates the Medicare ZIP Code
file and makes it available to contractors.
The following is a record layout of the ZIP5 file effective January 1, 2009
ZIP5 CODE to LOCALITY RECORD LAYOUT
Field Name Position Format COBOL

Description
State 1-2 X(02) Alpha State Code
ZIP Code 3-7 X(05) Postal ZIP Code
A/B MAC (B) 8-12 X(05) A/B MAC (B)
Number
Pricing Locality 13-14 X(02) Pricing Locality
Rural Indicator 15 X(01) Effective 1/1/07
Blank = urban,
R=rural, B=super
rural
Beneficiary Lab CB 16-17 X(02) Lab competitive bid
Locality locality;
Z1= CBA1
Z2= CBA2
Z9= Not a
demonstration
locality
Field Name Position Format COBOL
Description
Rural Indicator 2 18 X(01) What was effective
12/1/06
Blank=urban,
R=rural, B=super
rural
Filler 19-20 X(02)
Plus Four Flag 21 X(01) 0 = no +4 extension
1 = +4 extension
Filler 22-75 X(54)
Year/Quarter 76-80 X(05) YYYYQ
NOTE: Effective October 1, 2007, claims for ambulance services will continue to be submitted
and priced using 5-digit ZIP Codes. Contractors will not need to make use of the ZIP9 file for
ambulance claims.
Beginning in 2009, contractors shall maintain separate ZIP Code files for each year which will
be updated on a quarterly basis. Claims shall be processed using the correct ZIP Code file based
on the date of service submitted on the claim.
A ZIP Code located in a rural area will be identified with either a letter R or a letter B.
Some ZIP Codes will be designated as rural due to the Rural Urban Commuting Area (RUCA)
Score even though the ZIP Code may be located, in whole or in part, within an MSA or Core
Based Statistical Area (CBSA).
AB designation indicates that the ZIP Code is in a rural county (or RUCA area) that is
comprised by the lowest quartile by population of all such rural areas arrayed by population
density. Effective for claims with dates of service between July 1, 2004 and December 31, 2010,
contractors must apply a bonus amount to be determined by CMS to the base rate portion of the
payment under the FS for ground ambulance services with a POP B ZIP Code. This amount is
in addition to the rural bonus amount applied to ground mileage for ground transports originating
in a rural POP ZIP Code.
Each calendar quarter beginning October 2007, CMS will upload updated ZIP5 and ZIP9 ZIP
Code files to the Direct Connect (formerly the Network Data Mover). Contractors shall make
use of the ZIP5 file for ambulance claims and the ZIP9 file as appropriate per IOM Pub. 100-04,
Medicare Claims Processing Manual, chapter 1 -General Billing Requirements , section 10.1.1 -
Payment Jurisdiction Among A/B MACs (B) for Services Paid Under the Physician Fee
Schedule and Anesthesia Services and the additional information found in Transmittal 1193,
Change Request 5208, issued March 9, 2007. The updated files will be available for
downloading on approximately November 15th for the January 1 release, approximately
February 15th for the April 1 release, approximately May 15th for the July 1 release, and
approximately August 15th for the October 1 release.
Contractors are responsible for retrieving the ZIP Code files upon notification and must
implement the following procedure for retrieving the files:
1. Upon quarterly Change Requests communicating the availability of updated ZIP Code files,
go to the Direct Connect and search for the files. Confirm that the release number (last 5 digits)
corresponds to the upcoming calendar quarter. If the release number (last 5 digits) does not
correspond to the upcoming calendar quarter, notify CMS.
2. After confirming that the ZIP Code files on the Direct Connect corresponds to the next
calendar quarter, download the files and incorporate the files into your testing regime for the
upcoming model release.
The names of the files will be in the following format:
MU00.AAA2390.ZIP5.LOCALITY.Vyyyyr and MU00.AAA2390.ZIP9.LOCALITY.Vyyyyr

where yyyy equals the calendar year and r equals the release number with January =1, April
=2, July =3, and October =4. So, for example, the names of the file updates for October 2007 are
MU00.AAA2390.ZIP5.LOCALITY.V20074 and MU00.AAA2390.ZIP9.LOCALITY.V20074.
The release number for this file is 20074, release 4 for the year 2007.
When the updated files are loaded to the Direct Connect, they will overlay the previous ZIP
Code files.
NOTE: Even the most recently updated ZIP Code files will not contain ZIP Codes established
by the USPS after CMS compiles the files. Therefore, for ZIP Codes reported on claims that are
not on the most recent ZIP Code files, follow the instructions for new ZIP Codes in 20.1.5(B).
B. CMS will also provide contractors with a national Ambulance FS file that will contain
payment amounts for the applicable HCPCS codes. The file will include FS payment amounts
by locality for all FS localities. The FS file will be available via the CMS Mainframe
Telecommunications System. Contractors are responsible for retrieving this file when it
becomes available. The full FS amount will be included in this file. CMS will notify contractors
of updates to the FS and when the updated files will be available for retrieval. CMS will send a
full-replacement file for annual updates and for any other updates that may occur.
The following is a record layout of the Ambulance Fee Schedule file:
AMBULANCE FEE SCHEDULE FILE RECORD DESCRIPTION

Field Name Position Format Description
HCPCS 1-5 X(5) Level 2 HCPCs
code number for the
service.
A/B MAC (B) 6-10 X(5) Contractor Number
Number
Locality Code 11-12 X(2) Identification of
Pricing Locality
Field Name Position Format Description
RVU 13-18 9(4)V2 Relative Value
Units set a numeric
value for ambulance
services relative to
the value of a base
level ambulance
service.
GPCI (PE) 19-22 9V3 The GPCI for the
practice expense
portion of the
Medicare physician
fee schedule is used
to adjust payment to
account for regional
differences.
Base Rate 23-29 9(5)V2 A nationally
uniform base
amount used to
calculate each
HCPCS payment
amount.
Urban Rate 30-36 9(5)V2 Urban Ground/Air
mileage rate.
Rural Rate 37-43 9(5)V2 Rural Ground/Air
mileage rate.
Current Year 44-47 x(4) 4 digit current
effective year.
Current Quarter 48-48 x(1) 1 digit current
effective quarter:
1=January, 2=April,
3=July, 4 =October.
Current Date 49-56 x(8) Current Effective
Start Date.
Filler 57-80 X(26) Future use
20.1.6 - Contractor Determination of Fee Schedule Amounts

The FS amount is determined by the FS locality, based on the POP of the ZIP Code. Use the ZIP
Code of the POP to electronically crosswalk to the appropriate FS amount. All ZIP Codes on the
ZIP Code file are urban unless identified as rural by the letter R or the letter B. Contractors
determine the FS amount as follows:
If an urban ZIP Code is reported with a ground or air HCPCS code, the contractors
determine the amount for the service by using the FS amount for the urban base rate. To
determine the amount for mileage, multiply the number of reported miles by the urban
mileage rate.
If a rural ZIP Code is reported with a ground HCPCS code, the contractor determines the
amount for the service by using the FS amount for the rural base rate. To determine the
amount for mileage, contractors must use the following formula:
o For services furnished on or after July 1, 2004, for rural miles 1-17, the rate
equals 1.5 times the rural ground mileage rate per mile. Therefore, multiply 1.5
times the rural mileage rate amount on the FS to derive the appropriate FS rate per
mile;
o For services furnished during the period July 1, 2004 through December 31, 2008,
for all ground miles greater than 50 (i.e., miles 51+), the FS rate equals 1.25 times
the applicable mileage rate (urban or rural). Therefore, multiply 1.25 times the
urban or rural, as appropriate, mileage rate amount on the FS to derive the
appropriate FS rate per mile.
If a rural ZIP Code is reported with an air HCPCS code, the contractor determines the FS
amount for the service by using the FS amount for rural air base rate. To determine the
amount allowable for the mileage, multiply the number of loaded miles by the rural air
mileage rate.
20.2 - Payment for Mileage Charges

B3-5116.3, PM AB-00-131
Charges for mileage must be based on loaded mileage only, e.g., from the pickup of a patient to
his/her arrival at destination. It is presumed that all unloaded mileage costs are taken into
account when a supplier establishes his basic charge for ambulance services and his rate for
loaded mileage. Suppliers should be notified that separate charges for unloaded mileage will be
denied.
Instructions on billing mileage are found in 30.
20.3 - Air Ambulance

Refer to IOM Pub. 100-02, Medicare Benefit Policy Manual, chapter 10 - Ambulance Services,
section 10.4 Air Ambulance Services, and section 30.1.2 Definitions of Air Ambulance
Services for additional information on the coverage and definitions of air ambulance services.
Under certain circumstances, transportation by airplane or helicopter may qualify as covered
ambulance services. If the conditions of coverage are met, payment may be made for the air
ambulance services.
Air ambulance services are paid at different rates according to two air ambulance categories:
AIR ambulance service, conventional air services, transport, one way, fixed wing (FW)
(HCPCS code A0430)
AIR ambulance service, conventional air services, transport, one way, rotary wing (RW)
(HCPCS code A0431)
Covered air ambulance mileage services are paid when the appropriate HCPCS code is reported
on the claim:
HCPCS code A0435 identifies FIXED WING AIR MILEAGE
HCPCS code A0436 identifies ROTARY WING AIR MILEAGE
Effective for claims with dates of service on or after January 1, 2011, air mileage must be
reported in fractional numbers of loaded statute miles flown. Contractors must ensure that the
appropriate air transport code is used with the appropriate mileage code.
Air ambulance services may be paid only for ambulance services to a hospital. Other
destinations e.g., skilled nursing facility, a physicians office, or a patients home may not be
paid air ambulance. The destination is identified by the use of an appropriate modifier as defined
in Section 30(A) of this chapter.
Claims for air transports may account for all mileage from the point of pickup, including where
applicable: ramp to taxiway, taxiway to runway, takeoff run, air miles, roll out upon landing,
and taxiing after landing. Additional air mileage may be allowed by the contractor in situations
where additional mileage is incurred, due to circumstances beyond the pilots control. These
circumstances include, but are not limited to, the following:
Military base and other restricted zones, air-defense zones, and similar FAA
restrictions and prohibitions;
Hazardous weather; or
Variances in departure patterns and clearance routes required by an air traffic

controller.
If the air transport meets the criteria for medical necessity, Medicare pays the actual miles flown
for legitimate reasons as determined by the Medicare contractor, once the Medicare beneficiary
is loaded onto the air ambulance.
IOM Pub. 100-08, Medicare Program Integrity Manual, chapter 6 Intermediary MR Guidelines
for Specific Services contains instructions for Medical Review of Air Ambulance Services.
20.4 - Ambulance Inflation Factor (AIF)

(Rev. 3625, Issued: 10-14-16, Effective: 01-01-17, Implementation; 01-03-17)
Section 1834(l)(3)(B) of the Social Security Act (the Act) provides the basis for an update to the
payment limits for ambulance services that is equal to the percentage increase in the consumer
price index for all urban consumers (CPI-U) for the 12-month period ending with June of the
previous year. Section 3401 of the Affordable Care Act amended Section 1834(l)(3) of the Act to
apply a productivity adjustment to this update equal to the 10-year moving average of changes in
economy-wide private nonfarm business multi-factor productivity beginning January 1, 2011.
The resulting update percentage is referred to as the Ambulance Inflation Factor (AIF). These
updated percentages are issued via Recurring Update Notifications.
Part B coinsurance and deductible requirements apply to payments under the ambulance fee
schedule.
Following is a chart tracking the history of the AIF:
CY AIF
2003 1.1
2004 2.1
2005 3.3
2006 2.5
2007 4.3
2008 2.7
2009 5.0
2010 0.0
2011 -0.1
2012 2.4
2013 0.8
2014 1.0
2015 1.5
2016 -0.4
2017 0.7
20.5 - Documentation Requirements

In all cases, the appropriate documentation must be kept on file and, upon request, presented to
the contractor. It is important to note that the presence (or absence) of a physicians order for a
transport by ambulance does not necessarily prove (or disprove) whether the transport was
medically necessary. The ambulance service must meet all program coverage criteria in order
for payment to be made.
IOM Pub 100-01, Medicare General Information, Eligibility, and Entitlement Manual, chapter 4
- Physician Certifications and Recertification of Services, contains specific information on
supplier requirements for ambulance certification.
IOM Pub. 100-08, Medicare Program Integrity Manual, chapter 6 - Medicare Contractor Medical
Review Guidelines for Specific Services contains information on medical review instructions of
ambulance services.
20.6 - Payment for Non-Emergency Trips to/from ESRD Facilities

Section 637 of the American Taxpayer Relief Act of 2012 requires that, effective for transports
occurring on and after October 1, 2013, fee schedule payments for non-emergency basic life
support (BLS) transports of individuals with end-stage renal disease (ESRD) to and from renal
dialysis treatment be reduced by 10%. The payment reduction affects transports (base rate and
mileage) to and from hospital-based and freestanding renal dialysis treatment facilities for
dialysis services provided on a non-emergency basis. Non-emergency BLS ground transports
are identified by Healthcare Common Procedure Code System (HCPCS) code A0428.
Ambulance transports to and from renal dialysis treatment are identified by modifier codes G
(hospital-based ESRD) and J (freestanding ESRD facility) in either the first position (origin
code) or second position (destination code) within the two-digit ambulance modifier. (See
Section 30 (A) for information regarding modifiers specific to ambulance.)
Effective for claims with dates of service on and after October 1, 2013, the 10% reduction will
be calculated and applied to HCPCS code A0428 when billed with modifier code G or J.
The reduction will also be applied to any mileage billed in association with a non-emergency
transport of a beneficiary with ESRD to and from renal dialysis treatment. BLS mileage is
identified by HCPCS code A0425.
The 10% reduction will be taken after calculation of the normal fee schedule payment amount,
including any add-on or bonus payments, and will apply to transports in rural and urban areas as
well as areas designated as super rural.
Payment for emergency transports is not affected by this reduction. Payment for non-emergency
BLS transports to other destinations is also not affected. This reduction does not affect or change
the Ambulance Fee Schedule.
Note: The 10% reduction applies to beneficiaries with ESRD that are receiving non-emergency
BLS transport to and from renal dialysis treatment. While it is possible that a beneficiary who is
not diagnosed with ESRD will require routine transport to and from renal dialysis treatment, it is
highly unlikely. However, contractors have discretion to override or reverse the reduction on
appeal if they deem it appropriate based on supporting documentation.
30 - General Billing Guidelines

Independent ambulance suppliers may bill on the ASC X12 837 professional claim transaction or
the CMS-1500 form. These claims are processed using the MCS system.
Institution based ambulance providers may bill on the ASC X12 837 institutional claim
transaction or Form CMS 1450. These claims are processed using the FISS system.
A. Modifiers Specific to Ambulance Service Claims
For ambulance service claims, institutional-based providers and suppliers must report an origin
and destination modifier for each ambulance trip provided in HCPCS/Rates. Origin and
destination modifiers used for ambulance services are created by combining two alpha
characters. Each alpha character, with the exception of X, represents an origin code or a
destination code. The pair of alpha codes creates one modifier. The first position alpha code
equals origin; the second position alpha code equals destination. Origin and destination codes
and their descriptions are listed below:
D = Diagnostic or therapeutic site other than P or H when these are used as origin codes;
E = Residential, domiciliary, custodial facility (other than 1819 facility);
G = Hospital based ESRD facility;
H = Hospital;
I = Site of transfer (e.g. airport or helicopter pad) between modes of ambulance transport;
J = Freestanding ESRD facility;
N = Skilled nursing facility;
P = Physicians office;
R = Residence;
S = Scene of accident or acute event;
X = Intermediate stop at physicians office on way to hospital (destination code only)
In addition, institutional-based providers must report one of the following modifiers with every
HCPCS code to describe whether the service was provided under arrangement or directly:
QM - Ambulance service provided under arrangement by a provider of services; or

QN - Ambulance service furnished directly by a provider of services.
While combinations of these items may duplicate other HCPCS modifiers, when billed with an
ambulance transportation code, the reported modifiers can only indicate origin/destination.
B. HCPCS Codes
The following codes and definitions are effective for billing ambulance services on or after
January 1, 2001.
AMBULANCE HCPCS CODES AND DEFINITIONS
HCPCS Description of HCPCS Codes

Code
A0425 BLS mileage (per mile)
A0425 ALS mileage (per mile)
HCPCS Description of HCPCS Codes
Code
A0426 Ambulance service, Advanced Life Support (ALS), non-emergency
transport, Level 1
A0427 Ambulance service, ALS, emergency transport, Level 1
A0428 Ambulance service, Basic Life Support (BLS), non-emergency

transport
A0429 Ambulance service, basic life support (BLS), emergency transport
A0430 Ambulance service, conventional air services, transport, one way, fixed
wing (FW)
A0431 Ambulance service, conventional air services, transport, one way,
rotary wing (RW)
A0432 Paramedic ALS intercept (PI), rural area transport furnished by a
volunteer ambulance company, which is prohibited by state law from
billing third party payers.
A0433 Ambulance service, advanced life support, level 2 (ALS2)
A0434 Ambulance service, specialty care transport (SCT)
A0435 Air mileage; FW, (per statute mile)

A0436 Air mileage; RW, (per statute mile)
NOTE: PI, ALS2, SCT, FW, and RW assume an emergency condition and do not require an
emergency designator.
Refer to IOM Pub. 100-02, Medicare Benefit Policy Manual, Chapter 10 - Ambulance Service,
section 30.1 - Definitions of Ambulance Services, for the definitions of levels of ambulance
services under the fee schedule.
30.1 - Multi-Carrier System (MCS) Guidelines

B3-5116
Payment under the fee schedule for ambulance services:
Includes a base rate payment plus a payment for mileage;
Covers both the transport of the beneficiary to the nearest appropriate facility and all
items and services associated with such transport; and
Precludes a separate payment for items and services furnished under the ambulance
benefit.
Payment for items and services is included in the fee schedule payment. Such items and services
include but are not limited to oxygen, drugs, extra attendants, and EKG testing - but only when
such items and services are both medically necessary and covered by Medicare under the
ambulance benefit.
30.1.1 - MCS Coding Requirements for Suppliers

PM AB-00-88
The ambulance fee schedule contains the following HCPCS coding logic:
Seven categories of ground ambulance services;

Two categories of air ambulance services;
Payment based on the condition of the beneficiary, not on the type of vehicle used;
Payment is determined by the point of pickup (as reported by the 5-digit ZIP Code);
Increased payment for rural services; and
Services and supplies included in base rate.
30.1.2 - Coding Instructions for Paper and Electronic Claim Forms

Except as otherwise noted, beginning with dates of service on or after January 1, 2001, the
following coding instructions must be used.
Origin
Electronic billers should refer to the Implementation Guide to determine how to report the origin
information (e.g., the ZIP Code of the point of pickup). Beginning with the early
implementation of version 5010 of the ASC X12 837 professional claim format on January 1,
2011, electronic billers are required to submit, in addition to the loaded ambulance trips origin
information (e.g., the ZIP Code of the point of pickup), the loaded ambulance trips destination
information (e.g., the ZIP code of the point of drop-off). Refer to the appropriate
Implementation Guide to determine how to report the destination information. Only the ZIP
Code of the point of pickup will be used to adjudicate and price the ambulance claim, not the
point of drop-off. However, the point of drop-off is an additional reporting requirement on
version 5010 of the ASC X12 837 professional claim format.
Where the CMS-1500 Form is used the ZIP code is reported in item 23. Since the ZIP Code is
used for pricing, more than one ambulance service may be reported on the same paper claim for
a beneficiary if all points of pickup have the same ZIP Code. Suppliers must prepare a separate
paper claim for each trip if the points of pickup are located in different ZIP Codes.
Claims without a ZIP Code in item 23 on the CMS-1500 Form item 23, or with multiple ZIP
Codes in item 23, must be returned as unprocessable.
The contractor shall use the following remittance advice messages and associated codes when
CAQH CORE Business Scenario Two.
Group Code: CO
CARC: 16
RARC: N53
MSN: N/A
ZIP Codes must be edited for validity.
The format for a ZIP Code is five numerics. If a nine-digit ZIP Code is submitted, the last four
digits are ignored. If the data submitted in the required field does not match that format, the
claim is rejected.
Mileage
Generally, each ambulance trip will require two lines of coding, e.g., one line for the service and
one line for the mileage. Suppliers who do not bill mileage would have one line of code for the
service.
Beginning with dates of service on or after January 1, 2011, mileage billed must be reported as
fractional units in the following situations:
Where billing is by ASC X12 claims transaction (professional or institutional), and

Where billing is by CMS-1500 paper form.
Electronic billers should see the appropriate Implementation Guide to determine where to report
the fractional units. Item 24G of the Form CMS-1500 paper claim is used.
Fractional units are not required on Form CMS-1450
For trips totaling up to 100 covered miles suppliers must round the total miles up to the nearest
tenth of a mile and report the resulting number with the appropriate HCPCS code for ambulance
mileage. The decimal must be used in the appropriate place (e.g., 99.9).
For trips totaling 100 covered miles and greater, suppliers must report mileage rounded up to the
next whole number mile without the use of a decimal (e.g., 998.5 miles should be reported as
999).
For trips totaling less than 1 mile, enter a 0 before the decimal (e.g., 0.9).
For mileage HCPCS billed on the ASC X12 837 professional transaction or the CMS-1500 paper
form only, contractors shall automatically default to 0.1 units when the total mileage units are
missing.
30.1.3 - Coding Instructions for Form CMS-1491
Effective April 2, 2007, Form CMS-1491 will no longer be a valid format for submitting claims.
Suppliers who wish to submit a paper claim must use CMS-1500 Form.
30.1.4 - CWF Editing of Ambulance Claims for Inpatients

Hospital bundling rules exclude payment to independent suppliers of ambulance services for
beneficiaries in a hospital inpatient stay (see IOM Pub. 100-04, Medicare Claims Processing,
chapter 3 - Inpatient Hospital Billing, Section 10.4 - Payment of Nonphysician Services for
Inpatients). CWF performs reject edits to incoming claims from suppliers of ambulance
services.
Upon receipt of a hospital inpatient claim at the CWF, CWF searches paid claim history and
compares the period between the hospital inpatient admission and discharge dates to the line item
service date on an ambulance claim billed by a supplier. The CWF will generate an unsolicited
response when the line item service date falls within the admission and discharge dates of the
hospital inpatient claim.
Upon receipt of an unsolicited response, the A/B MAC (B) will adjust the ambulance claim and
recoup the payment.
Ambulance services with a date of service that are the same as an admission or discharge date on
an inpatient claim are separately payable and not subject to the bundling rules.
30.2 - Fiscal Intermediary Shared System (FISS) Guidelines

For SNF Part A, the cost of medically necessary ambulance transportation to receive most
services included in the RUG rate is included in the cost for the service. Payment for the SNF
claim is based on the RUGs, which takes into account the cost of such transportation to receive
the ancillary services.
Refer to Pub. 100-04, Medicare Claims Processing Manual, chapter 6 - SNF Inpatient Part A
Billing, Section 20.3.1 - Ambulance Services, for additional information on SNF consolidated
billing and ambulance transportation.
Refer to Pub. 100-04, Medicare Claims Processing Manual, chapter 3 - Inpatient Hospital
Billing, section 10.5 - Hospital Inpatient Bundling, for additional information on hospital
inpatient bundling of ambulance services.
In general, the A/B MAC (A) processes claims for Part B ambulance services provided by an
ambulance supplier under arrangements with hospitals or SNFs. These providers bill A/B
MACs (A) using only Method 2.
The provider must furnish the following data in accordance with A/B MAC (A) instructions.
The A/B MAC (A) will make arrangements for the method and media for submitting the data:
A detailed statement of the condition necessitating the ambulance service;
A statement indicating whether the patient was admitted as an inpatient. If yes the name
and address of the facility must be shown;
Name and address of certifying physician;
Name and address of physician ordering service if other than certifying physician;
Point of pickup (identify place and completed address);
Destination (identify place and complete address);
Number of loaded miles (the number of miles traveled when the beneficiary was in the
ambulance);
Cost per mile;
Mileage charge;
Minimum or base charge; and
Charge for special items or services. Explain.
A. General
The reasonable cost per trip of ambulance services furnished by a provider of services may not
exceed the prior years reasonable cost per trip updated by the ambulance inflation factor. This
determination is effective with services furnished during Federal Fiscal Year (FFY) 1998
(between October 1, 1997, and September 30, 1998). Providers are to bill for Part B ambulance
services using the billing method of base rate including supplies, with mileage billed separately
as described below.
The following instructions provide billing procedures implementing the above provisions.
B. Applicable Bill Types
The appropriate type of bill (13X, 22X, 23X, 83X, and 85X) must be reported. For SNFs,
ambulance cannot be reported on a 21X type of bill.
C. Value Code Reporting
For claims with dates of service on or after January 1, 2001, providers must report on every Part
B ambulance claim value code A0 (zero) and the related ZIP Code of the geographic location
from which the beneficiary was placed on board the ambulance in the Value Code field. The
value code is defined as ZIP Code of the location from which the beneficiary is initially placed
on board the ambulance. Providers report the number in dollar portion of the form location
right justified to the left of the dollar/cents delimiter.
More than one ambulance trip may be reported on the same claim if the ZIP Codes of all points
of pickup are the same. However, since billing requirements do not allow for value codes (ZIP
Codes) to be line item specific and only one ZIP Code may be reported per claim, providers
must prepare a separate claim for a beneficiary for each trip if the points of pickup are located in
different ZIP Codes.
For claims with dates of service on or after April 1, 2002, providers must report value code 32
(multiple patient ambulance transport) when an ambulance transports more than one patient at a
time to the same destination. Providers must report value code 32 and the number of patients
transported in the amount field as a whole number to the left of the delimiter.
NOTE: Information regarding the claim form locator that corresponds to the Value Code field
is found in Pub.100-04, Medicare Claims Processing Manual, Chapter 25 - Completing and
Processing the Form CMS-1450 Data Set.
D. Revenue Code/HCPCS Code Reporting
Providers must report revenue code 054X and, for services provided before January 1, 2001,
one of the following CMS HCPCS codes for each ambulance trip provided during the billing
period:
A0030 (discontinued 12/31/2000); A0040 (discontinued 12/31/2000);

A0050 (discontinued 12/31/2000); A0320 (discontinued 12/31/2000); A0322 (discontinued
12/31/2000); A0324 (discontinued 12/31/2000); A0326 (discontinued 12/31/2000); A0328,
(discontinued 12/31/2000); or A0330 (discontinued 12/31/2000).
In addition, providers report one of A0380 or A0390 for mileage HCPCS codes. No other
HCPCS codes are acceptable for reporting ambulance services and mileage. Providers report
one of the following revenue codes:
0540;
0542;
0543;
0545;
0546; or
0548.
Do not report revenue codes 0541, 0544, or 0547.
For claims with dates of service on or after January 1, 2001, providers must report revenue
code 540 and one of the following HCPCS codes for each ambulance trip provided during the
billing period:
A0426; A0427; A0428; A0429; A0430; A0431; A0432; A0433; or A0434.
Providers using an ALS vehicle to furnish a BLS level of service report HCPCS code, A0426
(ALS1) or A0427 (ALS1 emergency), and are paid accordingly. In addition, all providers
report one of the following mileage HCPCS codes: A0380; A0390; A0435; or A0436.
Since billing requirements do not allow for more than one HCPCS code to be reported for per
revenue code line, providers must report revenue code 0540 (ambulance) on two separate and
consecutive lines to accommodate both the Part B ambulance service and the mileage HCPCS
codes for each ambulance trip provided during the billing period. Each loaded (e.g., a patient is
onboard) 1-way ambulance trip must be reported with a unique pair of revenue code lines on the
claim. Unloaded trips and mileage are NOT reported.
However, in the case where the beneficiary was pronounced dead after the ambulance is called
but before the ambulance arrives at the scene: Payment may be made for a BLS service if a
ground vehicle is dispatched or at the fixed wing or rotary wing base rate, as applicable, if an air
ambulance is dispatched. Neither mileage nor a rural adjustment would be paid. The blended
rate amount will otherwise apply. Providers report the A0428 (BLS) HCPCS code. Providers
report modifier QL (Patient pronounced dead after ambulance called) in HCPCS/Rates
instead of the origin and destination modifier. In addition to the QL modifier, providers report
modifier QM or QN.
NOTE: Information regarding the claim form locator that corresponds to the HCPCS code is
found in Pub. 100-04, Medicare Claims Processing Manual, Chapter 25 - Completing and
E.Modifier Reporting
See the above Section 30 (A) (Modifiers Specific to Ambulance Service Claims) for
instructions regarding the usage of modifiers.
F. Line-Item Dates of Service Reporting
Providers are required to report line-item dates of service per revenue code line. This means
that they must report two separate revenue code lines for every ambulance trip provided during
the billing period along with the date of each trip. This includes situations in which more than
one ambulance service is provided to the same beneficiary on the same day. Line-item dates of
service are reported in the Service Date field.
NOTE: Information regarding the claim form locator that corresponds to the Service Date is
G. Service Units Reporting
For line items reflecting HCPCS code A0030, A0040, A0050, A0320, A0322, A0324, A0326,
A0328, or A0330 (services before January 1, 2001) or code A0426, A0427, A0428, A0429,
A0430, A0431, A0432, A0433, or A0434 (services on and after January 1, 2001), providers
are required to report in Service Units each ambulance trip provided during the billing period.
Therefore, the service units for each occurrence of these HCPCS codes are always equal to one.
In addition, for line items reflecting HCPCS code A0380 or A0390, the number of loaded miles
must be reported. (See examples below.)
Therefore, the service units for each occurrence of these HCPCS codes are always equal to one.
In addition, for line items reflecting HCPCS code A0380, A0390, A0435, or A0436, the number
of loaded miles must be reported.
H. Total Charges Reporting
For line items reflecting HCPCS codes A0426, A0427, A0428, A0429, A0430, A0431, A0432,
A0433, or A0434;
Providers are required to report in Total Charges the actual charge for the ambulance service
including all supplies used for the ambulance trip but excluding the charge for mileage. For line
items reflecting HCPCS code A0380, A0390, A0435, or A0436, report the actual charge for
mileage.
NOTE: There are instances where the provider does not incur any cost for mileage, e.g., if the
beneficiary is pronounced dead after the ambulance is called but before the ambulance arrives at
the scene. In these situations, providers report the base rate ambulance trip and mileage as
separate revenue code lines. Providers report the base rate ambulance trip in accordance with
current billing requirements. For purposes of reporting mileage, they must report the
appropriate HCPCS code, modifiers, and units as a separate line item. For the related charges,
providers report $1.00 in FL48 for non- covered charges. A/B MACs (A) should assign
remittance adjustment Group Code OA to the $1.00 non- covered mileage line, which in turn
informs the beneficiaries and providers that they each have no liability.
Prior to submitting the claim to CWF, the A/B MAC (A) will remove the entire revenue code
line containing the mileage amount reported in Non-covered Charges to avoid non-acceptance
of the claim.
NOTE: Information regarding the claim form locator that corresponds to the Charges fields is
EXAMPLES: The following provides examples of how bills for Part B ambulance services
should be completed based on the reporting requirements above. These examples reflect
ambulance services furnished directly by providers. Ambulance services provided under
arrangement between the provider and an ambulance company are reported in the same manner
except providers report a QM modifier instead of a QN modifier.
EXAMPLE 1: Claim containing only one ambulance trip:
Providers report as follows:
Revenue HCPCS/ Date of Units Total Charges

Code Modifiers Service
0540 A0428RHQN 082701 1 (trip) 100.00
0540 A0380RHQN 082701 4 (mileage) 8.00
EXAMPLE 2: Claim containing multiple ambulance trips:
Revenue HCPCS Modifiers Date of Units Total

Code Service Charges
#1 #2
0540 A0429 RH QN 082801 1 (trip) 100.00
0540 A0380 RH QN 082801 2 (mileage) 4.00
0540 A0330 RH QN 082901 1 (trip) 400.00
0540 A0390 RH QN 082901 3 (mileage) 6.00
EXAMPLE 3: Claim containing more than one ambulance trip provided on the same day:

0540 A0429 RH QN 090201 1 (trip) 100.00
0540 A0380 RH QN 090201 2 (mileage) 4.00
0540 A0429 HR QN 090201 1 (trip) 100.00

0540 A0380 HR QN 090201 2 (mileage) 4.00
I. Edits
FISS edits to assure proper reporting as follows:
For claims with dates of service on or after January 1, 2001, each pair of revenue codes
0540 must have one of the following ambulance HCPCS codes - A0426, A0427, A0428,
A0429, A0430, A0431, A0432, A0433, or A0434; and one of the following mileage
HCPCS codes - A0435, A0436 or for claims with dates of service on or after April 1,
2002, A0425;
For claims with dates of service on or after January 1, 2001, the presence of an origin
and destination modifier and a QM or QN modifier for every line item containing
revenue code 0540;
The units field is completed for every line item containing revenue code 0540;
For claims with dates of service on or after January 1, 2001, the units field is completed
for every line item containing revenue code 0540;
Service units for line items containing HCPCS codes A0426, A0427, A0428, A0429,
A0430, A0431, A0432, A0433, or A0434 always equal 1"
For claims with dates of service on or after July 1, 2001, each 1-way ambulance trip, line- item
dates of service for the ambulance service, and corresponding mileage are equal.
30.2.1 - A/B MAC (A) Bill Processing Guidelines Effective April 1, 2002, as a
Result of Fee Schedule Implementation
For SNF Part A, the cost of medically necessary ambulance transportation to receive most
services included in the RUG rate is included in the cost for the service. Payment for the SNF
claim is based on the RUGs, which takes into account the cost of such transportation to receive
the ancillary services.
Refer to IOM Pub. 100-04, Medicare Claims Processing Manual, chapter 6 - SNF Inpatient Part
A Billing, Section 20.3.1 - Ambulance Services for additional information on SNF consolidated
billing and ambulance transportation.
Refer to IOM Pub. 100-04, Medicare Claims Processing Manual, chapter 3 - Inpatient Hospital
Billing, section 10.5 - Hospital Inpatient Bundling, for additional information on hospital
inpatient bundling of ambulance services.
In general, the A/B MAC (A) processes claims for Part B ambulance services provided by an
ambulance supplier under arrangements with hospitals or SNFs. These providers bill A/B MACs
(A) using only Method 2.
The provider must furnish the following data in accordance with A/B MAC (A) instructions.
The A/B MAC (A) will make arrangements for the method and media for submitting the data:
A detailed statement of the condition necessitating the ambulance service;
A statement indicating whether the patient was admitted as an inpatient. If yes the name
and address of the facility must be shown;
Name and address of certifying physician;
Name and address of physician ordering service if other than certifying physician;
Point of pickup (identify place and completed address);
Destination (identify place and complete address);
Number of loaded miles (the number of miles traveled when the beneficiary was in the
ambulance);
Cost per mile;
Mileage charge;
Minimum or base charge; and
Charge for special items or services. Explain.
A. Revenue Code Reporting on Form CMS-1450
Providers report ambulance services under revenue code 540 in FL 42 Revenue Code.
B. HCPCS Codes Reporting on Form CMS-1450
Providers report the HCPCS codes established for the ambulance fee schedule. No other HCPCS
codes are acceptable for the reporting of ambulance services and mileage. The HCPCS code
must be used to reflect the type of service the beneficiary received, not the type of vehicle used.
Providers must report one of the following HCPCS codes in FL 44 HCPCS/Rates for each
base rate ambulance trip provided during the billing period:
A0426;
A0427;
A0428;
A0429;
A0430;
A0431;
A0432;
A0433; or
A0434.
These are the same codes required effective for services January 1, 2001.
In addition, providers must report one of HCPCS mileage codes:
A0425;
A0435; or
A0436.
Since billing requirements do not allow for more than one HCPCS code to be reported per
revenue code line, providers must report revenue code 540 (ambulance) on two separate and
consecutive line items to accommodate both the ambulance service and the mileage HCPCS
codes for each ambulance trip provided during the billing period. Each loaded (e.g., a patient is
onboard) 1-way ambulance trip must be reported with a unique pair of revenue code lines on the
claim. Unloaded trips and mileage are NOT reported.
For Form CMS-1450 claims submission prior to August 1, 2011, providers code one mile for
trips less than a mile. Miles must be entered as whole numbers. If a trip has a fraction of a mile,
round up to the nearest whole number.
Beginning with dates of service on or after January 1, 2011, for Form CMS-1450 hard copy
claims submissions August 1, 2011 and after, mileage must be reported as fractional units.
When reporting fractional mileage, providers must round the total miles up to the nearest tenth of
a mile and the decimal must be used in the appropriate place (e.g., 99.9).
For electronic claims submissions prior to January 1, 2011, providers code one mile for trips less
than a mile. Miles must be entered as whole numbers. If a trip has a fraction of a mile, round up
to the nearest whole number.
Beginning with dates of service on or after January 1, 2011, for electronic claim submissions
only, mileage must be reported as fractional units for trips totaling up to 100 covered miles.
When reporting fractional mileage, providers must round the total miles up to the nearest tenth of
a mile and the decimal must be used in the appropriate place (e.g., 99.9).
For trips totaling 100 covered miles and greater, providers must report mileage rounded up to the
nearest whole number mile (e.g., 999) and not use a decimal when reporting whole number miles
over 100 miles.
C. Modifier Reporting
Providers must report an origin and destination modifier for each ambulance trip provided and
either a QM (Ambulance service provided under arrangement by a provider of services) or QN
(Ambulance service furnished directly by a provider of services) modifier in FL 44
HCPCS/Rates".
D. Service Units Reporting
A0433, or A0434, providers are required to report in Service Units for each ambulance trip
provided. Therefore, the service units for each occurrence of these HCPCS codes are always
equal to one. In addition, for line items reflecting HCPCS code A0425, A0435, or A0436,
providers must also report the number of loaded miles.
E. Total Charges Reporting
A0433, or A0434, providers are required to report in Total Charges the actual charge for the
ambulance service including all supplies used for the ambulance trip, but excluding the charge
for mileage.
For line items reflecting HCPCS codes A0425, A0435, or A0436, providers are to report the
actual charge for mileage.
NOTE: There are instances where the provider does not incur any cost for mileage, e.g., if the
beneficiary is pronounced dead after the ambulance is called but before the ambulance arrives at
the scene. In these situations, providers report the base rate ambulance trip and mileage as
separate revenue code lines. Providers report the base rate ambulance trip in accordance with
current billing requirements. For purposes of reporting mileage, they must report the appropriate
HCPCS code, modifiers, and units. For the related charges, providers report $1.00 in non-
covered charges. A/B MACs (A) should assign remittance adjustment Group Code OA to the
$1.00 non-covered mileage line, which in turn informs the beneficiaries and providers that they
each have no liability.
F. Edits (A/B MAC (A) Claims with Dates of Service On or After 4/1/02)
For claims with dates of service on or after April 1, 2002, FISS performs the following edits to
assure proper reporting:
Edit to assure each pair of revenue codes 540 have one of the following ambulance
HCPCS codes - A0426, A0427, A0428, A0429, A0430, A0431, A0432, A0433, or
A0434; and one of the following mileage HCPCS codes - A0425, A0435, or A0436.
Edit to assure the presence of an origin, destination modifier, and a QM or QN modifier

for every line item containing revenue code 540;
Edit to assure that the units field is completed for every line item containing revenue
code 540;
Edit to assure that service units for line items containing HCPCS codes A0426, A0427,
A0428, A0429, A0430, A0431, A0432, A0433, or A0434 always equal 1"; and
Edit to assure on every claim that revenue code 540, a value code of A0 (zero), and a
corresponding ZIP Code are reported. If the ZIP Code is not a valid ZIP Code in
accordance with the USPS assigned ZIP Codes, A/B MACs (A) verify the ZIP Code to
determine if the ZIP Code is a coding error on the claim or a new ZIP Code from the
USPS not on the CMS supplied ZIP Code File.
Beginning with dates of service on or after April 1, 2012, edit to assure that only non-
emergency trips (i.e., HCPCS A0426, A0428 [when A0428 is billed without modifier
QL]) require an NPI in the Attending Physician field. Emergency trips do not require an
NPI in the Attending Physician field (i.e., A0427, A0429, A0430, A0431, A0432, A0433,
A0434 and A0428 [when A0428 is billed with modifier QL])
G. CWF (A/B MACs (A))
A/B MACs (A) report the procedure codes in the financial data section. They include revenue
code, HCPCS code, units, and covered charges in the record. Where more than one HCPCS
code procedure is applicable to a single revenue code, the provider reports each HCPCS code
and related charge on a separate line, and the A/B MAC (A) reports this to CWF. Report the
payment amount before adjustment for beneficiary liability in Rate and the actual charge in
Covered Charges.
30.2.2 - SNF Billing

(Rev. 3620; Issued: 10-07-16; Effective: 11-08-16, Implementation: 11-08-16)
The following ambulance transportation and related ambulance services for residents in Part A
stays are not included in the PPS rate. For additional information, see Chapter 6, SNF Inpatient
Part A Billing and SNF Consolidated Billing, 20.3.1, Ambulance Services. They may be billed
as Part B services by the supplier only in the following situations:
The ambulance trip is to the SNF for admission (the second character (destination) of any
ambulance HCPCS code modifier is N (SNF) other than modifier QN, and the date of
service is the same as the SNF 21X admission date.)
The ambulance trip is from the SNF to home (the first character (origin) of any HCPCS
code ambulance modifier is N (SNF)), and date of ambulance service is the same date as
the SNF through date, and the SNF patient status (FL 22) is other than 30.)
The ambulance trip is to a hospital based or non-hospital based ESRD facility (either one
of any HCPCS code ambulance modifier codes is G (Hospital based dialysis facility) or J
(Non-hospital based dialysis facility).
The ambulance trip is from the SNF to another SNF (the first and second character
(origin and destination) of any ambulance HCPCS code modifier is N (SNF)) and the
beneficiary is not in a Part A stay.
Ambulance payment associated with the following outpatient hospital service exclusions is paid
under the ambulance fee schedule:
Cardiac catheterization;
Computerized axial tomography (CT) scans;
Magnetic resonance imaging (MRIs);
Ambulatory surgery involving the use of an operating room, including the insertion,
removal, or replacement of a percutaneous esophageal gastrostomy (PEG) tube in the
hospitals gastrointestinal (GI) or endoscopy suite;
Emergency services;
Angiography;
Lymphatic and Venous Procedures; and
Radiation therapy.
See Chapter 6, 20.1.2, Other Excluded Services Beyond the Scope of a SNF Part A Benefit,
for further information pertaining to the list of services that are excluded from SNF Part A
payment referenced above.
The following ambulance transportation and related ambulance services for residents in a Part A
stay are included in the SNF PPS rate and may not be billed as Part B services by the supplier.
For additional information, see Chapter 6, 20.3.1, In these scenarios, the services provided are
subject to SNF CB and the first SNF is responsible for billing the services to the A/B MAC (A):
A beneficiarys transfer from one SNF to another before midnight of the same day. The
first and second characters (origin and destination) of any HCPCS code ambulance
modifier are N (SNF).
A transport between two SNFs is not separately payable when a beneficiary is in a Part A
covered SNF stay, and will result in a denial of a claim for such a transport. When billing
for ambulance transports, suppliers should indicate whether the transport was part of a
SNF Part A covered stay, using the appropriate origin/destination modifier (e.g., NH
for a transport from a SNF to a hospital).
Suppliers should bill with an NN origin/destination modifier when a SNF to SNF

transport occurs. A transport between two SNFs is not separately payable when a
beneficiary is in a Part A covered SNF stay, and will result in a denial of a claim for such
a transport.
o Ambulance transports to or from a diagnostic or therapeutic site other than a hospital or

renal dialysis facility (e.g., an independent diagnostic testing facility (IDTF), cancer
treatment center, radiation therapy center, wound care center, etc.). The first or second
character (origin or destination) of any HCPCS code ambulance modifier is D
(Diagnostic or therapeutic site other than P or H), and the other modifier (origin or
destination) is N (SNF).
30.2.3 - Indian Health Service (IHS)/Tribal Billing

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.
30.2.4 - Non-covered Charges on Institutional Ambulance Claims

Medicare law contains a restriction that miles beyond the closest available facility cannot be
billed to Medicare. Non-covered miles beyond the closest facility are billed with HCPCS
procedure code A0888 (non-covered ambulance mileage per mile, e.g., for miles traveled
beyond the closest appropriate facility). These non-covered line items can be billed on claims
also containing covered charges. Ambulance claims may use the -GY modifier on line items for
such non-covered mileage, and liability for the service will be assigned correctly to the
beneficiary.
The method of billing all miles for the same trip, with covered and non-covered portions, on the
same claim is preferable in this scenario. However, billing the non-covered mileage using
condition code 21 claims is also permitted, if desired, as long as all line items on the claims are
non-covered and the beneficiary is liable. Additionally, unless requested by the beneficiary or
required by specific Medicare policy, services excluded by statute do not have to be billed to
Medicare.
When the scenario is point of pick up outside the United States, including U.S. territories but
excepting some points in Canada and Mexico in some cases, mileage is also statutorily excluded
from Medicare coverage. Such billings are more likely to be submitted on entirely non-covered
claims using condition code 21. This scenario requires the use of a different message on the
Medicare Summary Notice (MSN) sent to beneficiaries.
Another scenario in which billing non-covered mileage to Medicare may occur is when the
beneficiary dies after the ambulance has been called but before the ambulance arrives. The -QL
modifier should be used on the base rate line in this scenario, in place of origin and destination
modifiers, and the line is submitted with covered charges. The -QL modifier should also be used
on the accompanying mileage line, if submitted, with non-covered charges. Submitting this non-
covered mileage line is optional for providers.
Non-covered charges may also apply is if there is a subsidy of mileage charges that are never
charged to Medicare. Because there are no charges for Medicare to share in, the only billing
option is to submit non-covered charges, if the provider bills Medicare at all (it is not required in
such cases). These non-covered charges are unallowable, and should not be considered in
settlement of cost reports. However, there is a difference in billing if such charges are
subsidized, but otherwise would normally be charged to Medicare as the primary payer. In this
latter case, CMS examination of existing rules relating to grants policy since October 1983,
supported by Federal regulations (42CFR 405.423), generally requires providers to reduce their
costs by the amount of grants and gifts restricted to pay for such costs. Thereafter, section
405.423 was deleted from the regulations.
Thus, providers were no longer required to reduce their costs for restricted grants and gifts, and
charges tied to such grants/gifts/subsidies should be submitted as covered charges. This is in
keeping with Congresss intent to encourage hospital philanthropy, allowing the provider
receiving the subsidy to use it, and also requiring Medicare to share in the unreduced cost.
Treatment of subsidized charges as non-covered Medicare charges serves to reduce Medicare
payment on the Medicare cost report contrary to the 1983 change in policy.
Medicare requires the use of the -TQ modifier so that CMS can track the instances of the subsidy
scenario for non-covered charges. The -TQ should be used whether the subsidizing entity is
governmental or voluntary. The -TQ modifier is not required in the case of covered charges
submitted when a subsidy has been made, but charges are still normally made to Medicare as the
primary payer.
If providers believe they have been significantly or materially penalized in the past by the failure
of their cost reports to consider covered charges occurring in the subsidy case, since Medicare
had previous billing instructions that stated all charges in the case of a subsidy, not just charges
when the entity providing the subsidy never charges another entity/primary payer, should be
submitted as non-covered charges, they may contact their A/B MAC (A) about reopening the
reports in question for which the time period in 42 CFR 405.1885 has not expired. A/B MACs
(A) have the discretion to determine if the amount in question warrants reopening. The CMS
does not expect many such cases to occur.
Billing requirements for all these situations, including the use of modifiers, are presented in the
chart below:
Mileage HCPCS Modifiers* Liab- Billing Remit. MSN Message
Scenario ility Require
-ments
STATUTE: A0888 on -QM or Bene- Bill mileage line Group 16.10
Miles beyond line item -QN, ficiary item with A0888 code Medicare
closest for the origin/destin -GY and other PR, does not pay
facility, non- ation modifiers as reason for this item or
OR covered modifier, needed to code 96 service; OR,
**Pick up mileage and -GY establish Medicare no
point outside unless liability, line paga por este
of U.S. condition item will be artculo o
code 21 denied; OR bill servicio
claim used service on
condition code
21 claim, no
-GY required,
claim will be
denied
Beneficiary Most -QL unless Pro- Bill mileage line Group 16.58 The
dies after appropria condition vider item with -QL as Code provider billed
ambulance is te code -21 non-covered, CO, this charge as
called ambulanc claim line item will be reason non-covered.
e HCPCS denied code 96 You do not
mileage have to pay
code (i.e., this amount.
ground, OR, El
air) proveedor
facur este
cargo como no
cubierto.
Usted no tiene
que pagar ests
cantidad.
Mileage HCPCS Modifiers* Liab- Billing Remit. MSN Message
Scenario ility Require
-ments
Subsidy or A0888 on -QM or Pro- Bill mileage line Group 16.58 The
government line item -QN, origin/ vider item with Code provider billed
owned for the destination A0888, and CO, this charge as
Ambulance, non- modifier, modifiers as reason non-covered.
Medicare covered and non-covered, code 96 You do not
NEVER mileage -TQ must be line item will be have to pay
billed*** used for denied this amount.
policy OR, El
purposes proveedor
facur este
cargo como no
cubierto. Usted
no tiene que
pagar ests
cantidad.
* Current ambulance billing requirements state that either the -QM or -QN modifier must be
used on services. The -QM is used when the ambulance service is provided under arrangement
by a provider of services, and the -QN when the ambulance service is provided directly by a
provider of services. Line items using either the -QM or -QN modifiers are not subject to the
FISS edit associated with FISS reason code 31322 so that these lines items will process to
completion. Origin/destination modifiers, also required by current instruction, combine two
alpha characters: one for origin, one for destination, and are not non-covered by definition.
** This is the one scenario where the base rate is not paid in addition to mileage, and there are
certain exceptions in Canada and Mexico where mileage is covered as described in existing
ambulance instructions.
***If Medicare would normally have been billed, submit mileage charges as covered charges
despite subsidies.
Medicare systems may return claims to the provider if they do not comply with the requirements
in the table.
40 - Medical Conditions List and Instructions

See http://www.cms.gov/Center/Provider-Type/Ambulances-Services-Center.html for a medical

conditions list and instructions to assist ambulance providers and suppliers to communicate the
patient's condition to Medicare contractors, as reported by the dispatch center and as observed by
the ambulance crew. Use of the medical conditions list does not guarantee payment of the claim
or payment for a certain level of service.
In addition to reporting one of the medical conditions on the claim, one of the transportation
indicators may be included on the claim to indicate why it was necessary for the patient to be
transported in a particular way or circumstance. The provider or supplier will place the
transportation indicator in the narrative field on the claim. Information on the appropriate use
of transportation indicators is also available at http://www.cms.gov/Center/Provider-
Type/Ambulances-Services-Center.html
Transmittals Issued for this Chapter
Rev # Issue Date Subject Impl Date CR#
R3800CP 06/23/2017 Internet Only Manual Update to Pub. 100-04, Chapter 07/25/2017 10143
15
R3625CP 10/14/2016 Ambulance Inflation Factor for CY 2017 and 01/03/2017 9811
Productivity Adjustment
R3620CP 10/07/2016 Update to Pub 100-04, Medicare Claims Processing 11/08/2016 9791
Manual, Chapter 15: Ambulance
R3481CP 03/18/2016 Updates to Pub. 100-04, Chapters 3, 6, 7 and 15 to 06/20/2016 9562

Correct Remittance Advice Messages
R3240CP 04/24/2015 Medicare Claims Processing Manual - Chapter 15, 07/27/2015 9142
Section 40, Ambulance - Medical Conditions List
R3076CP 09/24/2014 Update to Pub. 100-04, Chapter 15 to Provide 09/16/2014 8604

Language-Only Changes for Updating ICD-10, ASC
X12, and Medicare Administrative Contractors
(MAC) Implementation
Productivity Adjustment Rescinded and replaced by
Transmittal 3090

Language-Only Changes for Updating ICD-10, ASC
X12, and Medicare Administrative Contractors
(MAC) Implementation Rescinded and replaced by
Transmittal 3076

Language-Only Changes for Updating ICD-10 and
ASC X12 Rescinded and replaced by Transmittal
3027
R2703CP 05/10/2013 Ambulance Payment Reduction for Non-Emergency 10/07/2013 8269

Basic Life Support (BLS) Transports to and from
Renal Dialysis Facilities
R2620CP 12/21/2012 Ambulance Inflation Factor CY 2013 and 01/07/2013 8156

R2383CP 01/12/2012 FISS Claims Processing Updates for Ambulance 04/02/2012 7557
Services
R2336CP 10/28/2011 FISS Claims Processing Updates for Ambulance 04/02/2012 7557
Services Rescinded and replaced by Transmittal
2383
R2318CP 10/13/2011 Update to the Internet Only Manual Pub. 100-04, 01/03/2012 7558
Chapter 15 - Ambulance, to Include the Medicare and
Medicaid Extenders Act of 2010 (MMEA) Provisions
R2313CP 09/30/2011 Update to the Internet Only Manual Pub. 100-04, 01/03/2012 7558
Chapter 15 - Ambulance, to Include the Medicare and
Medicaid Extenders Act of 2010 (MMEA) Provisions
Rescinded and replaced by Transmittal 2318
R2310CP 09/23/2011 Ambulance Inflation Factor for CY 2012 01/03/2012 7546
R2162CP 02/22/2011 Updates to the Internet Only Manual Pub. 100-04, 03/21/2011 7018
Chapter 1 - General Billing Requirements, Chapter 15
- Ambulance, and Chapter 26 - Completing and
Processing Form CMS-1500 Data Set
R2124CP 12/23/2010 Updates to the Internet Only Manual Pub. 100-04, 01/25/2011 7018
Chapter 1 - General Billing Requirements, Chapter 15
- Ambulance, and Chapter 26 - Completing and
Processing Form CMS-1500 Data Set - Rescinded
and replaced by Transmittal 2162
R2103CP 11/19/2010 Fractional Mileage Units Submitted on Ambulance 01/03/2011 7065

Claims
R2102CP 11/19/2010 Systems Changes Necessary to Implement Technical 04/04/2011 7219

Correction Related to Critical Access Hospital
Services, Section 3128 of the Affordable Care Act,
Pub. 118-148
R2074CP 10/25/2010 Ambulance Inflation Factor (AIF) for CY 2011 and 01/03/2011 7042
Transmittal 2104
R2069CP 10/15/2010 Ambulance Inflation Factor (AIF) for CY 2011 and 01/03/2011 7042
Transmittal 2074

Claims Rescinded and replaced by Transmittal 2103

Claims Rescinded and replaced by Transmittal 2065
R1942CP 04/02/2010 Update to the Medical Conditions List and 05/03/2010 6896
Instructions
R1921CP 02/19/2010 Billing for Services Related to Voluntary Uses of 04/05/2010 6563
Advanced Beneficiary Notices of Noncoverage
(ABNs)
(ABNs) Rescinded and replaced by Transmittal
1921
(ABNs) Rescinded and replaced by Transmittal

1894
R1821CP 09/25/2009 Billing for and Ambulance Transport with More Than 10/26/2009 6621
One Patient Onboard
R1696CP 03/06/2009 Updates to the Medicare Claims Processing Manual, 04/06/2009 6347
Publication 100-04, Chapter 15
R1682CP 02/13/2009 Clarification of Date of Service (DOS) of Ambulance 03/13/2009 6372

Services
R1591CP 09/09/2008 ZIP Code Files by Date of Service - Replaced by 07/07/2008 5881
Transmittal 1591
R1472CP 03/06/2008 Update of Institutional Claims References 04/07/2008 5893
R1463CP 02/22/2008 ZIP Code Files by Date of Service - Replaced by 07/07/2008 5881
Transmittal 1591
R1421CP 01/25/2008 Update of Institutional Claims References - 04/07/2008 5893

Rescinded and Replaced by Transmittal 1472
R1333CP 08/17/2007 Ambulance: New Remark Code for Denying 10/01/2007 5659
Separately Billed Services
R1318CP 08/17/2007 Ambulance: New Remark Code for Denying 10/01/2007 5659
Separately Billed Services - Replaced by Transmittal
1333
R1249CP 05/25/2007 Update to Publication 100-04, Chapters 1 and 15 for 10/01/2007 5578
ZIP5 and ZIP9 Medicare Zip Code Files.
R1185CP 02/23/2007 Ambulance Fee Schedule-Medical Conditions List 04/02/2007 5442
R1144CP 12/29/2006 Elimination of CMS-1491 and CMS-1490U Forms 04/02/2007 5390

R1102CP 11/03/2006 Ambulance Inflation Factor (AIF) for CY 2007 01/02/2007 5358
R1100CP 11/03/2006 Jurisdiction for Ambulance Supplier Claims 01/01/2008 5203
R852CP 02/10/2006 Corrected Ambulance Fee Schedule file for CY 2006 02/24/2006 4362
R789CP 12/23/2005 Ambulance Medical Conditions List 03/27/2006 4221
R668CP 09/02/2005 Enforcement of Hospital Inpatient Bundling: Carrier 01/03/2006 3933

Denial of Ambulance Claims during an Inpatient Stay
R622CP 07/29/2005 Enforcement of Hospital Inpatient Bundling: Carrier 01/03/2006 3933

Denial of Ambulance Claims during an Inpatient Stay
R459CP 02/04/2005 Change To CWF SNF Edits For Consolidated Billing 04/04/2005 3676
for Ambulance Transport to or From Therapeutic
Sites -- replaces R342CP
R437CP 01/21/2005 This instruction revises Section 30, Chapter 6 to 02/22/2005 3664
include ICD-9-CM coding guidance for Skilled
Nursing Facilities (SNFs) and removes Home Health
Agency (HHA) Types of Bill from various sections of
Chapter 15 to conform with existing policy.
R425CP 01/10/2005 Payment of Ambulance Services to Indian Health 04/03/2005 3521

Service (IHS) or Tribal Hospitals Including (CAHs)
R395CP 12/15/2004 Ambulance Fee Schedule - Medical Conditions List 01/03/2005 3619
R367CP 11/12/2004 Replaced by Revision 425CP 04/04/2005 3521
R342CP 10/29/2004 Change to the Common Working File (CWF) Skilled 04/04/2005 3427
Nursing Facility (SNF) Consolidated Billing (CB)
Edits for Ambulance Transports to or from a
Diagnostic or Therapeutic Site
R220CP 06/25/2004 Implementation of Section 414 of the Medicare 07/06/2004 3099

Prescription Drug, Improvement, and Modernization
Act (MMA) of 2003
R212CP 06/18/2004 Replaced by Revision 220CP 07/06/2004 3099
Edits for Drugs and Electrocardiogram (EKG)
Testing Provided During an Ambulance Transport
Edits for Ambulance Transports to or from a
Diagnostic or Therapeutic Site Other than a
Physician's Office or Hospital
R088CP 02/06/2004 Implementation of Changes to Payment for 07/05/2004 3099

Ambulance Services Required by Section 414 of
MMA
R059CP 01/02/2004 Corrects the "Ambulance HCPCS Codes Crosswalk 01/05/2004 3035
and Definitions," makes technical corrections to the
manual, and adds a new carrier requirement for
HCPCS code A0800
including the 2004 AIF for determining the payment
limit for ambulance services required by $1834(1) of
the Social Security Act (the Act), the blending
percentages applicable to CY 2004, and the address
of the ambulance fee schedule file for CY 2004
R001CP 10/01/2003 Initial Publication of Manual NA NA
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What are the main topics covered in the document?

What are the main topics covered in the document?

What regulations govern ambulance services?

What regulations govern ambulance services?

Medicare Claims Processing Manual

Transmittals for Chapter 15

10.1.1 - Statutes and Regulations

10.1.2 - Other References to Ambulance Related Policies in the CMS Internet

Coverage: Manual instructions regarding coverage of ambulance services, including

10.2 - Summary of the Benefit

Actual transportation of the beneficiary occurs.

The transportation by ambulance must be medically necessary, i.e., the beneficiarys

The transportation is not part of a Part A service.

A/B MAC (A)

A/B MAC (B)

Point of Pickup (POP)

10.4 - Additional Introductory Guidelines

20.1 - Payment Under the Ambulance Fee Schedule

Payment under the fee schedule for ambulance services:

Includes a base rate payment plus a separate payment for mileage;

20.1.3 - Services Provided

20.1.4 - Components of the Ambulance Fee Schedule

For ground ambulance services, the fee schedule amount includes:

4. A nationally uniform loaded mileage rate;

5. An additional amount for certain mileage for a rural point-of-pickup; and

For air ambulance services, the fee schedule amount includes:

A. Ground Ambulance Services

2. Relative Value Units

The RVUs are as follows:

Service Level RVU

The following chart summarizes the above information:

Service Dates of Service Bonus Calculation

For Paramedic Intercept, an area is a rural area if:

It is designated as a rural area by any law or regulation of a State;

6. Regional Ambulance FS Payment Rate Floor for Ground Ambulance Transports

Year National FS Regional FS

8. Adjustments for FS Payment Rates for Ground Ambulance Transports

Service Effective Dates Payment

All rural base rates 7/1/04 - 12/31/06 2%

B. Air Ambulance Services

2. Geographic Adjustment Factor (GAF)

4. Adjustment for Services Furnished in Rural Areas

20.1.5 - ZIP Code Determines Fee Schedule Amounts

In areas without an apparent ZIP Code, it is the providers/suppliers responsibility to confirm

Contractors must request additional documentation from providers/suppliers when a claim

B. New ZIP Codes

C. Inaccurate ZIP Codes

D. Claims Outside of the U.S.

The following policy applies to claims outside of the U.S.:

ZIP5 CODE to LOCALITY RECORD LAYOUT

Field Name Position Format COBOL

The names of the files will be in the following format:

MU00.AAA2390.ZIP5.LOCALITY.Vyyyyr and MU00.AAA2390.ZIP9.LOCALITY.Vyyyyr

The following is a record layout of the Ambulance Fee Schedule file:

AMBULANCE FEE SCHEDULE FILE RECORD DESCRIPTION

20.1.6 - Contractor Determination of Fee Schedule Amounts

20.2 - Payment for Mileage Charges

Instructions on billing mileage are found in 30.

20.3 - Air Ambulance