The Department of Veterans Affairs (VA) recently announced a significant delay in implementing controversial rule changes related to air ambulance reimbursements for veterans.
Initially, these changes were set to take effect in February 2024, but following concerns raised by lawmakers and industry advocates, the VA has postponed the new rules until 2029. This move comes as a relief to many veterans, particularly those in rural areas, where access to air ambulance services is crucial for emergency medical care.
Background on the rule changes
The VA had planned to revise how it reimburses air ambulance companies, aligning its payment structure with Medicare rates. The goal was to create more formal contracts with ambulance service providers and reduce what the VA considered excessive costs.
According to a 2018 report by the VA Inspector General, the department was paying up to 60% more than other healthcare systems for similar services, resulting in millions of dollars in unnecessary expenses. The new rules aimed to curb these excessive costs by requiring air ambulance firms to contract with the VA directly, receiving reimbursements at a rate similar to Medicare’s, often lower than current charges.
However, the proposed changes faced strong opposition from lawmakers and service providers. Many argued that the lower reimbursement rates could severely harm air ambulance services, especially in rural areas where the costs of providing emergency medical transport are significantly higher.
Industry representatives warned that such cuts could lead to reduced services or even the closure of some providers, endangering the lives of veterans who rely on these services in remote regions.
Lawmakers’ response and advocacy
Senators Jon Tester (D-Mont.) and Jerry Moran (R-Kan.), leading advocates for veterans in rural areas, praised the VA’s decision to delay the rule changes. In a joint statement, they emphasized the importance of maintaining emergency transportation services for veterans, particularly in regions where air ambulances can mean the difference between life and death. Tester highlighted that the VA’s hasty roll-out of the new payment structure could have had devastating effects on rural healthcare providers, and both senators stressed the need for a more thoughtful approach to addressing the issue.
“Emergency air and ground transportation services in Montana and rural America can be the difference between life and death,” Tester said. “VA’s rushed roll-out of its rate change for these services could have been the final straw for providers serving rural America, and I’m glad to see VA answering our call to fix this issue.”
Ben Clayton, CEO of Life Flight Network, also welcomed the delay, calling it a critical step towards finding a sustainable solution that ensures veterans continue to have access to life-saving emergency services. He acknowledged that while there is more work to be done, the postponement allows stakeholders time to collaborate on a long-term solution that balances cost efficiency with the needs of veterans.
“Allow time for us to work together on a permanent solution while ensuring veterans maintain access to these critical, life-saving emergency services.” He said.
