CMS Pub. 100-04, ch. 15, § 30.2.3

Ambulance services furnished by IHS/Tribal hospitals including Critical Access Hospitals

(CAHs) will be paid according to the appropriate payment methodology.

For dates of service on or after December 21, 2000 and prior to January 1, 2004, medically

necessary ambulance services furnished by an IHS/Tribal CAH or by an entity that is owned and

operated by an IHS/Tribal CAH are paid based on 100 percent of the reasonable cost if the 35

mile rule for cost-based payment is met. In order for the 35 mile rule to be met, the IHS/Tribal

CAH or the entity that is owned and operated by the IHS/Tribal CAH, must be the only provider

or supplier of ambulance services that is located within a 35 mile drive of the IHS/Tribal CAH or

the entity. Those CAHs that meet the 35 mile rule for cost-based payment shall report condition

code B2 (CAH ambulance attestation) on their bills.

For dates of service on or after January 1, 2004, ambulance services furnished by an IHS/Tribal

CAH or by an entity that is owned and operated by an IHS/Tribal CAH are paid based on 101

percent of the reasonable cost if the 35 mile rule for cost-based payment is met.

When the 35 mile rule for cost-based payment is not met, the IHS/Tribal CAH ambulance

service or the ambulance service furnished by the entity that is owned and operated by the

IHS/Tribal CAH is paid based on the ambulance fee schedule.

Other IHS/Tribal hospital based ambulance services are reimbursed based on the ambulance fee

schedule.