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<classification authority="sudocs">GA 1.13:GAO-02-244T</classification>
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 <subject>Emergency medical services</subject>
 <subject>Ground transportation operations</subject>
 <subject>Health care costs</subject>
 <subject>Hospitals</subject>
 <subject>Medical expense claims</subject>
 <subject>Payments</subject>
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<titleInfo>
 <title>Ambulance Services: Changes Needed to Improve Medicare Payment Policies and Coverage Decisions</title>
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<abstract>Medicare&apos;s payment and coverage policies for ambulance services
are based on reasonable costs for hospital-based providers or on 
reasonable charges for ambulance providers not affiliated with a 
hospital or other health care facility (known as freestanding	 
providers). This method has produced wide differences in payments
across providers for the same services. Further, there has been  
considerable variation in Medicare&apos;s determinations of what	 
ambulance services are covered and what provider documentation is
needed to ensure claims are paid. The Balanced Budget Act of 1997
(BBA) required the Medicare program to change its payment system 
for ambulance services. In response, the Health Care Financing	 
Administration (HCFA), now called the Centers for Medicare and	 
Medicaid Services (CMS), has proposed a fee schedule to 	 
standardize payments across provider types based on national	 
rates for particular services. Under BBA, the fee schedule was to
have applied to ambulance services furnished on or after January 
1, 2000. HCFA published a proposed rule on September 12, 2000,	 
and has received public comment but has not yet issued a final	 
rule. In this testimony, GAO discusses the unique concerns of	 
rural ambulance providers and the likely effects of the proposed 
fee schedule on these providers. Many rural ambulance providers  
face a set of unique challenges in implementing an appropriate	 
payment policy. Rural providers--particularly those serving large
geographic areas with low population density--tend to have high  
per-trip costs compared with urban and suburban providers. The	 
proposed Medicare fee schedule does not sufficiently distinguish 
the providers serving beneficiaries in the most isolated rural	 
areas and may not appropriately account for the higher costs of  
low-volume providers.</abstract>
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<identifier type="preferred citation">GAO-02-244T</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO-02-244T; Ambulance Services: Changes Needed to Improve Medicare Payment Policies and Coverage Decisions;
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<subject>
 <topic>Emergency medical services</topic>
 <topic>Ground transportation operations</topic>
 <topic>Health care costs</topic>
 <topic>Hospitals</topic>
 <topic>Medical expense claims</topic>
 <topic>Payments</topic>
 <topic>Public health legislation</topic>
 <topic>Medicare Program</topic>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 111 Page 251</partNumber>
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 <identifier type="Statute citation">111 Stat. 251</identifier>
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  <title>United States Public Law 33 (105th Congress)</title>
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 <identifier type="public law citation">Public Law 105-33</identifier>
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