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Congress extends Medicare ambulance add-on payments for 23 months

The 2% urban, 3% rural and 22.6% super-rural add-ons are extended through 2027, the American Ambulance Association says

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The U.S. Capitol, Wednesday, July 16, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

Julia Demaree Nikhinson/AP

WASHINGTON — The American Ambulance Association announced that Congress has extended Medicare ground ambulance add-on payments for 23 months under the Consolidated Appropriations Act.

President Jamie Pafford-Gresham said in an email that the provision is among a limited number of healthcare measures in the package receiving an extension longer than one year. The Congressional Budget Office estimates the extension will provide $197 million in continued funding relief for ground ambulance service organizations nationwide.

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The temporary Medicare ground-ambulance add-ons, 2% for urban, 3% for rural and 22.6% for super-rural areas, have been extended through Dec. 31, 2027. Officials say there was a brief three-day lapse, but it will not affect payments because of Medicare’s 10-day claims hold.

Advocates credited years of bipartisan, data-driven lobbying for the extension, saying it closely mirrors the House version of the Protecting Access to Ground Ambulance Services Act (H.R. 2232 / S. 1643).

Supporters said their outreach secured 53 House cosponsors and 18 Senate cosponsors, and thanked lawmakers and stakeholders for every call, email and meeting that helped win the change.

The legislation also directs ASPR to prioritize solutions to the EMS workforce shortage, recognizing ongoing challenges in the profession.

While the extension offers short-term stability, Pafford-Gresham said the association is already looking ahead to 2026. Top priorities include limiting Medicare Advantage cost-sharing for patients, protecting the Rural Health Transformation Fund and pushing for long-term payment reform based on actual ambulance cost data. The group is also focused on easing the federal fuel tax burden on ambulance services and addressing workforce shortages among EMTs and paramedics.

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Bill Carey is the associate editor for FireRescue1.com and EMS1.com. A former Maryland volunteer firefighter, sergeant, and lieutenant, Bill has written for several fire service publications and platforms. His work on firefighter behavioral health garnered a 2014 Neal Award nomination. His ongoing research and writings about line-of-duty death data is frequently cited in articles, presentations, and trainings. Have a news tip? He can be reached at news@lexipol.com.