Medicare Update: New Bill Would Increase Payments Impacting EMS

Meanwhile, a bipartisan bill introduced in the House would overhaul how Medicare pays ambulance providers.

Key points

• Medicare's current reimbursement structure has remained largely unchanged since 2002 and relies on cost data collected in 1998, despite major changes in labor, fuel, and equipment costs.
• So far, the bill has been referred to the House Energy and Commerce Committee and the House Ways and Means Committee.
• An ambulance has to be staffed, equipped and ready before anyone calls 911, Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, informed Newsweek.
• This would establish updated Medicare ambulance payment amounts beginning in 2028, and comprehensive reviews of ambulance payment rates would be required every three years.
• The RESCUE Act was introduced late last month and has been referred to the House committees with jurisdiction over Medicare policy.

Meanwhile, a bipartisan bill introduced in the House would overhaul how Medicare pays ambulance providers. It some lawmakers say would prevent financial strain on emergency medical services (EMS) agencies in rural communities. The legislation, known as the Reimbursing Emergency Services for Critical Urgent Encounters (RESCUE) Act of 2026, would require the Centers for Medicare & Medicaid Services (CMS) to regularly update Medicare's ambulance fee schedule using current cost data rather than rates based on prior decades-old information. "EMS providers and first responders show up for our communities every single day, often in the most difficult moments imaginable, and they deserve a Medicare system that shows up for them in return, " Representative August Pfluger (TX-11) remarked in an official note. "This is especially critical in rural Texas and rural communities across the country, where a funding shortfall can mean the difference between an EMS agency staying open or shutting its doors." Why It Matters Medicare is one of the largest payers for ambulance transportation in the United States, especially in rural areas where a significant share of patients are elderly and covered by Medicare. Outdated reimbursement rates could force EMS agencies to absorb the costs. A 2024 RAND Corporation report prepared for CMS discovered that ambulance agencies are paid more than $1, 500 less than their costs per transport on average. What To Know Medicare's current reimbursement structure has remained largely unchanged since 2002 and relies on cost data collected in 1998, despite major changes in labor, fuel, and equipment costs. The bill would update Medicare's ambulance payment system by requiring CMS to conduct regular updates to reimbursement rates based on current cost data. This would establish updated Medicare ambulance payment amounts beginning in 2028, and comprehensive reviews of ambulance payment rates would be required every three years. The law would additionally rise annual payment amounts in other years using inflation adjustments and expand Medicare ambulance data reporting requirements, including for air ambulance providers. "The RESCUE Act is looking to resolve a cost of living matter where costs have gone up for EMS services but reimbursements have stayed the same for over two decades. By adjusting cost every three years it would align cost increases with the services being provided, " Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, informed Newsweek. Bipartisan Backing The bill was introduced by Pfluger, a Republican from Texas, alongside a bipartisan group of lawmakers that includes Jill Tokuda, Beth Van Duyne, Kim Schrier, John Joyce, Brad Schneider, Claudia Tenney and Terri Sewell. So far, the bill has been referred to the House Energy and Commerce Committee and the House Ways and Means Committee. "For beneficiaries, the biggest potential benefit is access. An ambulance has to be staffed, equipped and ready before anyone calls 911, " Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, informed Newsweek. "And those fixed costs are especially tough to spread throughout a low volume rural service. Better reimbursement could create it easier to keep that capacity available." What Happens Next The RESCUE Act was introduced late last month and has been referred to the House committees with jurisdiction over Medicare policy. The legislation must be approved by committee before advancing to the House floor for consideration. "This has solid bipartisan backing so I do see it passing. For something like reimbursements that are still on the 2002 scale, this is way overdue, " Thompson remarked. Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas.

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For context, the legislation, known as the Reimbursing Emergency Services for Critical Urgent Encounters (RESCUE) Act of 2026, would require the Centers for Medicare & Medicaid Services (CMS) to regularly update Medicare's ambulance fee schedule using current cost data rather than rates based on prior decades-old information.

"EMS providers and first responders show up for our communities every single day, often in the most difficult moments imaginable, and they deserve a Medicare system that shows up for them in return, " Representative August Pfluger (TX-11) remarked in an official note.

"This is especially critical in rural Texas and rural communities across the country, where a funding shortfall can mean the difference between an EMS agency staying open or shutting its doors."

Medicare is one of the largest payers for ambulance transportation in the United States, especially in rural areas where a significant share of patients are elderly and covered by Medicare.

Outdated reimbursement rates could force EMS agencies to absorb the costs. A 2024 RAND Corporation report prepared for CMS discovered that ambulance agencies are paid more than $1, 500 less than their costs per transport on average.

Notably, the bill would update Medicare's ambulance payment system by requiring CMS to conduct regular updates to reimbursement rates based on current cost data.

Meanwhile, the law would additionally rise annual payment amounts in other years using inflation adjustments and expand Medicare ambulance data reporting requirements, including for air ambulance providers.

"The RESCUE Act is looking to resolve a cost of living matter where costs have gone up for EMS services but reimbursements have stayed the same for over two decades. By adjusting cost every three years it would align cost increases with the services being provided, " Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, informed Newsweek.

Meanwhile, the bill was introduced by Pfluger, a Republican from Texas, alongside a bipartisan group of lawmakers that includes Jill Tokuda, Beth Van Duyne, Kim Schrier, John Joyce, Brad Schneider, Claudia Tenney and Terri Sewell.

"For beneficiaries, the biggest potential benefit is access. An ambulance has to be staffed, equipped and ready before anyone calls 911, " Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, informed Newsweek.

"And those fixed costs are especially tough to spread throughout a low volume rural service. Better reimbursement could create it easier to keep that capacity available."

Meanwhile, the RESCUE Act was introduced late last month and has been referred to the House committees with jurisdiction over Medicare policy.

Notably, the legislation must be approved by committee before advancing to the House floor for consideration.

"This has solid bipartisan backing so I do see it passing. For something like reimbursements that are still on the 2002 scale, this is way overdue, " Thompson remarked.

Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas.

For now, medicare Update: New Bill Would Increase Payments Impacting EMS remains the part of the story worth watching, and further updates are likely as more details are confirmed.