In 2020, the Legislature created the Ambulance Transport Quality Assurance Fee Program (program), which applies to private ambulance transport providers (providers). The program requires providers to pay the fee for each emergency ambulance transport and each provider is required to submit certain data to the Health Care Authority (HCA).
The quality assurance fee rate is calculated based on transport and gross receipts data that HCA receives from providers. HCA applies an add-on to increase the Medicaid reimbursement for provider's emergency ambulance transports. The add-on must only be funded from the fees and interest earned on the fees, and federal reimbursement or other related federal funds.
For state fiscal year beginning July 1, 2022, the annual quality assurance fee rate is calculated by the product of the projected aggregate fee schedule amount divided by 90 percent of the projected total annual ambulance transports by all providers.
The program's fund is known as the Ambulance Transport Fund and is in the custody of the state Treasury. The fund must retain its interest and must only be used to receive and disburse funds in accordance with the program.
The program expiration date is repealed.
PRO: There has not been more significant legislation for ambulance rates since 2004. Providers get a $230 fee added to their rates from this program. This has resulted in an increase to wages of about 30. About 76 percent of the overall increase has gone into wages.