VA’s Ambulance Transport Payment Rule Vacated by Federal Circuit

The US Department of Veterans Affairs’ final rule amending how the department pays for noncontract ground and air ambulance transports is set aside because the rule exceeds statutory authority, the Federal Circuit said Monday.

The impact of the final rule—to be implemented in 2029—was that instead of paying the actual costs of ambulance services, the VA would pay the “lesser” of the actual charge or the Medicare fee schedule amount for all ambulance transports, the court said.

The court agreed with MedStar Mobile Healthcare and other petitioners that sought review of the final rule, arguing that it exceeded discretionary ...