LANSING, Mich. — A bill aiming to increase Medicaid funding for ambulance services was passed by the Senate, and will make its way to the governor for final approval.
The Quality Assurance Assessment Program (QAAP) works by assessing a state tax on ambulance providers and agencies. The money is then used to draw down matching money from the federal government and those funds are used to increase Medicaid payments to ambulance providers, according to a Michigan Association of Ambulance Services press release.
The legislation is meant to create a process that uses funds collected from ambulance services to significantly improve Medicaid reimbursement. While the structure of the program and documentation isn’t yet completed, increased payments are expected to begin in early 2016.
The Michigan Association of Ambulance Services has been working for eight years on the legislation in order to bring Medicaid payments more in line with the cost of providing ambulance services.