On July 1, 2004, CMS issued an interim final rule codifying four payment provisions for Medicare covered ambulance services contained in the Medicare Prescription Drug, Improvement and Modernization Act of 2003. See Fed. Reg. 40,288. This rule will impact all ambulance providers and suppliers to the extent that it authorizes higher payments to those furnishing Medicare-covered ambulance services to Medicare beneficiaries. The rule provides for a one percent increase in payments for all urban transports and a two percent increase in payments for all rural transports. There is also a 22.6 percent increase in payments for the base rate in the least populated rural areas, and there is a 25 percent increase in the payments for mileage in excess of 50 miles. The provisions are now in effect. CMS is accepting comments that must be received no later than 5 p.m. on August 30, 2004. Comments may be submitted electronically at http://www.cms.hhs.gov/regulations/ecomments or to www.regulations.gov.

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