New law co-authored by Andrade will increase Medicaid reimbursement rate for EMS

INDIANAPOLIS - State Representative Mike Andrade (D-Munster) celebrated the signing of House Enrolled Act 1112, which increases the state Medicaid reimbursement rate for private emergency medical services (EMS) to match the federal Medicare rate for the service. He co-authored the legislation. 

“The Medicaid reimbursement rates for EMS in Indiana have not changed since 1976,” Andrade said. “With this legislation, we are finally rectifying this situation for low-income and vulnerable Hoosiers who rely on Medicaid to meet their healthcare needs.”  

Andrade expects the measure to reduce healthcare costs and bolster response times for Hoosiers in need of ambulances.

“Increasing the Indiana Medicaid reimbursement rate for EMS will help our local ambulance services recruit and retain talent at a time when we face a shortage of healthcare workers,” Andrade said. “In turn, the measure will help cut down ambulance response times and reduce out-of-pocket expenses for Hoosier families.”

Currently, ambulance ground mileage is reimbursed at as little as $1.25 per mile by Indiana Medicaid, but the rate is $7.047 under Indiana Medicare.

“This is a big step toward improving healthcare services and public safety for all Hoosiers,” Andrade said. “Updating the Medicaid reimbursement rates strengthens our communities by keeping EMS professionals in our Hoosier state and ensures that those on Medicaid don’t have to think about the hidden costs of calling an ambulance when faced with a medical emergency.”

Additionally, the law adjusts the state's Medicaid reimbursement methodology for children insured by Medicaid receiving care from out-of-state children's hospitals.

Governor Eric Holcomb signed the bill on March 15. The rate change will go into effect on July 1, 2023.

“I want to thank Governor Holcomb for signing this bill,” Andrade said. “I also want to thank the advocates who pushed for this change and the lawmakers on both sides of the aisle who helped get this done.”