Medicare rewrites ambulance payment rules using actual cost data
H.R. 9970 — RESCUE Act of 2026 · Filed by August Pfluger (R-TX) · 9 cosponsors · Introduced Jul 27, 2026 · Referred to committee
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What it does
This bill amends Medicare's ambulance payment rules to require the government to review and update how much it pays for ground and air ambulance services starting in 2028, using actual cost data collected from providers. Beginning in 2028, Medicare will set ambulance payment rates based on current cost information; from 2029 onward, payments will increase annually by the consumer price index unless a full data review happens (every three years starting in 2031). The bill requires ambulance providers to submit cost and operational data to support these reviews.
Why we flagged it
The bill's core mechanism is a procedural overhaul of how Medicare calculates ambulance reimbursement rates, shifting from static formulas to data-driven triennial reviews. This is regulatory modernization, not a simple rate increase or cut.
What the text implies
- The bill mandates air ambulance providers submit cost data for the first time under Medicare, potentially exposing previously opaque pricing practices and creating a baseline for future rate adjustments that may constrain air ambulance margins.
- By tying non-review years (2029 onward) to CPI rather than a fixed percentage, the bill creates a floor but no ceiling—if CPI rises sharply, ambulance payments rise automatically without congressional action, potentially shifting budget pressure elsewhere in Medicare.
The full analysis lists 4 implications of this text.
Who stands to gain
ground ambulance service providers; air ambulance service providers; rural ambulance operators (if cost-based rates recognize rural delivery challenges)