Case Study

Reducing Costs & Improving Program Integrity for Medicare

How our evaluation of CMS's prior authorization model saved $1 billion and protected patient care in non-emergency ambulance transport

Client
CMS: Center for Medicare and Medicaid Services
$1bn
Saved medicare between 2015-2019 in the demonstration states

We found no negative impact on care access or quality, highlighting the demonstration’s success in reducing improper use while maintaining positive patient outcomes.

Client Need

Curbing non-emergency ambulance overuse

CMS needed to curb the overuse of non-emergency ambulance rides—a source of avoidable expenses that were driving up Medicare costs—while preserving access to medically necessary transport.

Our Approach

Assessing program integrity and care quality

We brought together evaluation, program integrity, clinical, and Medicare transportation experts to measure the impact of CMS's prior authorization model for non-emergency ambulance use. Our analysis examined effects on spending, service quality, and program integrity—using data from across a number of states.

Key Outcomes

Cost reductions achieved with no care disruption

Our multi-year evaluation helped achieve significant cost savings while safeguarding patient care. By analyzing Medicare claims, we showed that reduced spending on unnecessary non-emergency ambulance services would not compromise the well-being of Medicare beneficiaries. We found no negative impact on care access or quality, highlighting the demonstration’s success in reducing improper use while maintaining positive patient outcomes.

Key findings at a glance

  • Saved $1 billion in Medicare costs (2015–2019)
  • No reduction in access to medically necessary services
  • Decreased total costs per beneficiary by 2.4%
  • Provided evidence-based insights to inform CMS policy expansions

Why It Matters

CMS’s model shows that smarter oversight reduces unnecessary spending while protecting patients. These findings support better, data-driven policies that generate substantial cost savings.

Partners In Progress

Mynti Hossain

Mynti Hossain

Researcher

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Matthew Kehn

Matthew Kehn

Senior Managing Consultant

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