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CMS Revises Ambulance Inflation Update for 2015

October 28, 2014
AAA Member Advisory
TO:          AAA Membership
FROM:      Brian S. Werfel, Esq.
RE:           CMS Revises Ambulance Inflation Update for 2015

On October 7, 2014, CMS issued Transmittal 3090, which revises the Medicare Ambulance Inflation Factor (AIF) for calendar year 2015. CMS is now calculating that the Ambulance Inflation Factor for calendar year 2015 will be 1.5%. CMS had previously calculated the 2015 AIF at 1.4%. 

The revision is the result of CMS recalculating its projection of the 10-year moving average of changes in the annual private nonfarm business multi-factor productivity index (MFP). CMS had previously estimated that the MFP for calendar year 2015 would be 0.7%. CMS is now projecting that the MFP for the upcoming year will be 0.6%. The increase in the Consumer Price Index for all Urban Consumers (CPI-U) for the most recent 12-month period remains unchanged at 2.10%. Section 3401 of the Affordable Care Act provides that the AIF is calculated by subtracting the MFP from the percentage change in the CPI-U over the prior 12-month period. 

Transmittal 3090 can be downloaded from the CMS website at: http://www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/2014-Transmittals-Items/R3090CP.html.

Guaranteed cash flow during transition.