CMS published in the Aug. 24 issue of the Federal Register a proposed rule with comment period regarding nonemergency medical transportation. Prior to the enactment of the Deficit Reduction Act (DRA) of 2005, a state that wanted to provide transportation as medical assistance under the state plan could not selectively contract with a broker nor provide services differently in different areas of the state without receiving a waiver under section 1915(b) of the Social Security Act. These waivers allowed states to selectively contract with brokers and to operate their programs differently in different areas of the state.
However, the DRA gives the states greater flexibility in providing nonemergency medical transportation. States are no longer required to obtain a section 1915(b) waiver in order to provide nonemergency transportation as an optional medical service through a competitively contracted broker or undergo the administrative burden of the 1915(b) biannual waiver renewal.