Jenny Carter’s heart raced as the paramedic team worked. They administered blood right there in her Arlington living room. Advanced monitors transmitted her vital signs to the hospital ahead of her arrival. This sophisticated care saved her life during a cardiac crisis last fall. But the funding model supporting this response is from a different era. The Medicare rates reimbursing that ambulance ride are based on 1998 cost data.
A new bipartisan bill, the RESCUE Act, co-introduced by Rep. Beth Van Duyne, seeks to fix this disconnect. It would require Medicare ambulance rates to be updated every three years. Current rates were last set in 2002. “Every second matters when an ambulance is racing to save a life,” Van Duyne stated. “Rates that haven’t kept pace with real costs shouldn’t be one more thing standing in their way.”
Steve Dralle of Global Medical Response, which services Arlington’s 911 system, calls the reimbursement model broken. Labor costs have more than doubled since the late 1990s. The technology used in modern ambulances, like pre-hospital blood products and advanced telemetry, didn’t exist then. “Things that we did back then were great, but they are nothing compared to today,” Dralle said. Adjustments for inflation haven’t been enough to cover the gap.
The financial strain is acute. For providers like Global Medical Response, Medicare covers only about 40-45% of an ambulance ride’s actual cost. The company must absorb the rest. This affects service decisions across Tarrant County. David Phillips of Falck Southwest explains the ripple effect. His company handles critical inter-facility transports. Low Medicare rates force them to charge municipalities and insurers more. It also discourages ambulance companies from operating in areas with high Medicare populations, like Granbury.
“Resources shift away from those communities,” Phillips noted. The RESCUE Act could reverse that trend. Better reimbursement would allow for newer equipment, more training, and competitive pay for paramedics. It would provide the financial stability to expand services where they are needed most. For patients like Jenny, it’s about ensuring the next emergency call is met with equal speed and capability.
The bill presents a fundamental question. How do we value the crucial bridge between a 911 call and the hospital doors? Modern medicine has evolved dramatically in the back of an ambulance. Our policies must finally catch up.
- Updating Medicare ambulance rates every three years
- Addressing labor cost increases since the late 1990s
- Incorporating advanced ambulance technology
- Improving financial stability for ambulance providers
- Expanding services in high Medicare population areas
- Ensuring swift emergency response for patients
| Year | Medicare Rate Update | Description |
|---|---|---|
| 1998 | No | Base rate established for ambulance rides |
| 2002 | No | Last rate adjustment made |
| 2023 | Proposed | RESCUE Act aims to update rates |
