Pa. ambulances get badly needed help as lawmakers chip away at overdue budget items

Emergency medical services companies throughout Pennsylvania will soon get an infusion of cash many say they need to survive.

State lawmakers this week passed a bill that will significantly raise the mileage reimbursement EMS companies receive for transporting patients.

The change is expected to give Pennsylvania EMS companies an additional $126.2 million per year, although, because the new mileage reimbursement doesn’t kick in until Jan. 1, they’ll receive half that during the state’s 2023-2024 budget year.

“If we expect our emergency medical services providers to respond when we call 911, we need to do our part to support them,” said state Rep. Martin Causer, R-McKean, who is a former emergency medical technician. “This is an important step toward ensuring our EMS personnel can continue their life-saving work.”

EMS companies have long warned that payments from Medicare and Medicaid — and oftentimes private insurers — don’t cover their expenses. They say the situation has threatened their survival and forced some ambulance companies, especially in rural areas, to shut down.

Now they will be reimbursed for mileage at whichever Medicaid or Medicare rate is highest.

Lawmakers said it will ensure that ambulances are paid for all the miles they cover while carrying patients. Previously, Medicaid exempted the first 20 miles.

Beginning Jan. 1, they will receive nearly $9 per mile, and more in certain rural areas — more than double the amount Medicaid pays, according to supporters.

The bill received overwhelming support in both the House and the Senate but still needs to be signed by Gov. Josh Shapiro.

The bill also resolved two outstanding issues related to hospitals and nursing homes:

It reauthorized a state tax on hospitals that, because the federal government matches state contributions, enables a net gain in overall funding for hospitals after the state tax money is sent back to hospitals.

And it resolved a situation where Medicaid reimbursements for nursing homes were partially based on costs of meeting COVID-19 mandates. Lawmakers said the situation was causing some nursing homes to lose money and putting them at risk of having to close.

The healthcare-related items passed this week are part of a longer list of items approved in the 2023-2024 state budget, but which remain in limbo because lawmakers have failed to pass legislation needed to spend the money.

Senate Majority Leader Joe Pittman, R-Indiana County, portrayed the actions as a sign of reasonable minds prevailing on urgent matters that directly impact health of Pennsylvanians.

“This is a significant achievement for communities across our commonwealth and a demonstration of divided government coming together to advance commonsense legislation to help all Pennsylvanians,” he said.