KENTUCKY AMBULANCE PROVIDERS ASSOCIATION

 

 February 3, 2006

ANNOUNCEMENT

AAA Alert
CMS freezes Medicare ambulance payments

By Mark Harrison
KAPA President

According to a bulletin released by AAA, a representative of the Centers for Medicare and Medicaid Services ( CMS ) announced that the agency had informed Medicare carriers and fiscal intermediaries to immediately freeze until further notice the payment of all pending ambulance service claims.  CMS plans to freeze payments until it can provide carriers and fiscal intermediaries with the correct rates for 2006 under the Medicare ambulance fee schedule.  When CMS provided carriers and fiscal intermediaries with the 2006 rates this past December, CMS had applied the inflation update of 2.5% twice and had not reduced the regional fee schedule percentage for last year’s level of 60% to this year’s level of 40%.

I have engaged AAA counsel Patton Boggs to prepare an official written AAA position stating that payments should be restored immediately which will be delivered first thing tomorrow morning to the appropriate individuals at CMS .  We have also already contacted CMS officials through informal channels and will continue to pursue this issue until it corrected. We will keep you posted on new developments.

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