The Centers for Medicare & Medicaid Services (CMS) recently finalized the ambulance inflation factor (AIF) for calendar year 2016. The AIF is equal to the percentage increase in the consumer index for all urban consumers (CPI-U) for the 12-month period ending with June of the previous year, minus a productivity adjustment established in the Affordable Care Act that is equal to the 10-year moving average of changes in economy-wide private nonfarm business multi-factor productivity beginning January 1, 2011.
For 2016, the CPI-U is 0.1 percent, while the productivity adjustment equals 0.5 percent. Unfortunately, this will result in a 2016 ambulance inflation factor of a negative 0.4 percent (-o.4%). This untimely reduction in Medicare reimbursements further exacerbates the discrepancy between Medicare reimbursements and the cost of the services they are consuming.
As you know, AAMS has been raising awareness on Capitol Hill of this issue throughout the year, and offering a reasonable data-driven solution, in the form of H.R. 822 and S. 1149. We continue to work to advance these initiatives and will continue to fight on behalf of our membership for fair payments from government programs and all consumers of our vital healthcare services.