CAC Medical Billing and Reimbursement for Ambulance Services — Questions and Answers
Question 1: Which of the following is a primary payer for ambulance services in the United States?
- Medicare (Correct answer)
- Private donations
- State police funds
- Housing and Urban Development grants
Correct answer: Medicare
Medicare is one of the largest payers for ambulance services, covering emergency and medically necessary non-emergency transports.
Question 2: What is the primary requirement for Medicare to reimburse non-emergency ambulance transport?
- The patient must sign a waiver
- The transport must be medically necessary (Correct answer)
- The ambulance must be operated by a private company
- The patient must have private insurance
Correct answer: The transport must be medically necessary
Medicare requires that the transport be medically necessary and that the patient cannot be safely transported by other means.
Question 3: Which billing code set is primarily used for ambulance services?
- CPT
- HCPCS Level II (Correct answer)
- ICD-10-CM
- SNOMED CT
Correct answer: HCPCS Level II
HCPCS (Healthcare Common Procedure Coding System) Level II codes are used to bill ambulance services and medical supplies.
Question 4: Which of the following must be documented to justify ambulance transport reimbursement?
- The patient’s home address
- The patient’s ability to pay
- The medical necessity of the transport (Correct answer)
- The number of emergency calls received that day
Correct answer: The medical necessity of the transport
Clear documentation of medical necessity, including the patient’s condition and the reason for transport, is required for reimbursement.
Question 5: Which modifier is typically used for emergency ambulance transport?
- NE
- EM (Correct answer)
- TX
- NC
Correct answer: EM
The modifier 'EM' is used to indicate emergency transport services for ambulance billing purposes.
Question 6: Why is prior authorization required for some non-emergency ambulance transports?
- To verify patient identity
- To confirm medical necessity before reimbursement (Correct answer)
- To document mileage
- To record dispatch times
Correct answer: To confirm medical necessity before reimbursement
Prior authorization ensures that the transport is medically necessary and meets coverage requirements before reimbursement is approved.
Which of the following is a primary payer for ambulance services in the United States?