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CMS Releases Informational Bulletin on Applicable Federal Cost Principles for Ground Emergency Medical Transportation (GEMT)

30 Aug 2022 8:09 AM | Matt Zavadsky (Administrator)

This is important information for all ambulance providers participating in GEMT programs.

Very specific communication by CMS and the CMCS reminding states that GEMT providers should only include costs directly related to GROUND EMERGENCY MEDICAL TRANSPORT services in their cost reports (i.e.: ‘Medicaid covered services’), and NOT costs that unrelated to covered services (E.g.: costs related to medical first response).

Here's the CMS Memo:

CMS Memo on Cost Allocation for GEMT - 8-17-22.pdf

This is stated in this part of the attached memo:

“Costs such as fire and rescue personnel and equipment are generally not directly or indirectly related to Medicaid covered services. As such, cost identification methodologies that inappropriately allocate costs associated with fire and rescue personnel and equipment to the Medicaid program potentially would be unallowable under the federal cost allocation requirements. For example, if state or local law requires that both a fire truck and an ambulance be dispatched to emergency scenes to transport a potential patient, even though the ambulance will be the only vehicle that participates in the transport of the Medicaid beneficiaries to a facility for treatment, only costs incurred in the provision of a Medicaid-covered service may be allocated to Medicaid.


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