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2015 Medicare Ambulance Inflation Update

Spetember 5, 2014
AAA Member Advisory
TO:          AAA Membership
FROM:      Tristan North, AAA Senior Vice President for Government Affairs
RE:           2015 Medicare Ambulance Inflation Update

The Centers for Medicare and Medicaid Services (CMS) has released the official Medicare ambulance inflation factor for 2015. The inflation update will be 1.4%.

Each year, the Medicare Ambulance Fee Schedule is updated to reflect inflation. The inflation adjustment factor is called the “Ambulance Inflation Factor” or “AIF”. The AIF was historically calculated based on the increase to the Consumer Price Index – All Urban Consumers (CPI-U) over the twelve month period ending on June 30 of the prior year. The Bureau of Labor Statistics released its calculation of the increase in the CPI-U for the month of June 2014. The increase in the CPI-U over the 12-month period ended on June 30, 2014 was 2.1%.

Section 3401 of the Affordable Care Act mandated that the AIF be reduced by the change in the 10-year moving average of the private nonfarm business multi-factor productivity index (MFP) for calendar years 2011 and beyond. CMS determined that the MFP for 2015 will be 0.7%.

Accordingly, CMS has stated the AIF for 2015 will be 1.4%.

For a copy of the inflation update transmittal, go to http://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/Downloads/R3057CP.pdf

Guaranteed cash flow during transition.