The ambulance fee schedule is effective for claims with dates of service on or after April 1, 2002. The payment amounts during the next four years will be a blended payment amount, part ambulance fee schedule, and part reasonable charge reimbursement. The percentages for the blended rate during the transition period are as follows:

      Transition Year         Reasonable          Fee Schedule
                              Charge/Cost           Percent
                                Percent

    Year One                      80                   20
    (4/1/2002-12/2002)

    Year Two (CY 2003)            60                   40

    Year Three (CY 2004)          40                   60

    Year Four (CY 2005)           20                   80

    Year Five (CY 2006)            0                  100

Reasonable Charge Allowance Disclosure

Beginning February 28, 2003, and continuing through 2005, the Upstate Medicare Division (UMD) will disclose to each ambulance supplier the supplier's reasonable charge allowance for the forthcoming year (i.e., the full amount that would have been payable under reasonable charge for all ambulance services). Publication of the reasonable charge disclosure is contingent upon the release of the ambulance inflation factor (AIF). If multiple AIFs are issued in the same calendar year, UMD will prepare a separate disclosure package to notify suppliers of the appropriate amounts and dates of service for each AIF.

Ambulance Fee Schedule

The Centers for Medicare & Medicaid Services (CMS) will issue a yearly fee schedule and post it on their Web site. The ambulance fee schedule is accessible on the CMS Web site at www.cms.hhs.gov/medlearn/refamb.asp. The ambulance fee schedule for UMD's jurisdiction is also available on the UMD Web site at www.umd.nycpic.com/ambulance_fees02.html.