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How Does the 2023 Federal Budget Affect NEMT Providers

Thanks to an increase in specific programs in the 2023 federal budget, the non-emergency medical transportation (NEMT) industry could see new opportunities.  

The 2023 budget significantly increases funding for the Centers for Medicare and Medicaid Services (CMS) and the Department of Veteran Affairs (VA) healthcare services.    

The increased funding opens doors to potential growth and market expansion for NEMT providers, especially in underserved areas. This presents a chance for providers to extend their reach and ensure that transportation services are accessible to those who most need them.  

This article examines how this year’s budget changes will directly affect NEMT providers.  

Increase in Funding for Centers for Medicare and Medicaid Services   

The federal budget for the fiscal year 2023 includes a substantial increase of $53 billion in funding specifically allocated to the Centers for Medicare and Medicaid Services (CMS). This significant funding boost is poised to profoundly impact NEMT providers, enabling them to effectively expand their programs and services.  

One notable effect of this increased budget allocation is expanding Medicaid coverage, leading to a larger population becoming eligible for NEMT services. Consequently, NEMT providers can expect a surge in beneficiaries relying on NEMT services for their transportation needs.  

This funding for CMS represents a positive step towards improving access to healthcare. It presents a valuable opportunity for NEMT providers to play a more pivotal role in meeting the growing demands of the Medicaid-covered population.  

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Budget allocation for the Department of Veteran Affairs   

The 2023 budget has designated $119 billion for comprehensive in-patient and out-patient care for veterans, reflecting a remarkable 32% increase in funding compared to the previous year.  

This significant budget allocation bears essential implications for NEMT providers, who should proactively prepare for an increased demand for medical transportation services. As veterans’ access to healthcare services expands, there will be a corresponding need for reliable transportation to and from medical appointments and long-term care facilities.  

How do the Changes in the Budget Affect NEMT Providers  

These changes offer opportunities and challenges for NEMT providers and have the potential to shape their operations and growth.   


Expanding into New Markets: The substantial increase in funding for Medicaid creates a favorable environment for NEMT service providers to venture into previously underserved rural areas. As Medicaid aims to expand the availability of NEMT services, providers have a unique opportunity to tap into new markets, leading to potential growth and the ability to serve a broader range of clients. This expansion presents a promising avenue for providers to increase their presence and contribute to improved healthcare access in rural communities.      

Establishing Partnerships with Other Organizations: The budget increase creates significant opportunities for NEMT providers to forge strategic partnerships with healthcare providers, transportation agencies, and advocacy groups. Collaborating with these organizations allows NEMT providers to pool resources, expertise, and networks, enhancing service delivery and expanding the reach of transportation services. These collaborative efforts strengthen the overall healthcare ecosystem and contribute to improved health outcomes for individuals relying on NEMT services.  


Meeting Increased Demand: NEMT providers must ensure they have sufficient capacity and resources to manage the expected increase in volume as funding increases and demand for their services rises.  

Facing Heightened Competition: The funding increase may attract new players to the NEMT market, intensifying competition. This could lead to squeezed margins and make it more challenging for NEMT providers to maintain profitability.   

Managing Regulatory Compliance: An increase in the serviceable market for NEMT will open the doors to bad actors who want to take advantage of the market conditions. An increase in fraud and false claims will inevitability lead to more regulations. NEMT providers must stay current with changing regulatory requirements to manage the complex regulatory environment and ensure compliance effectively.  

Accessible Transportation for Veterans  

NEMT plays a crucial role in meeting veterans’ transportation needs, ensuring they have access to the required healthcare services.    

Under the VA, several programs and grants impact NEMT providers:   

  • Beneficiary Travel Program: With a significant budget of $45 billion, the Beneficiary Travel Program reimburses veterans for travel expenses incurred when traveling to and from VA medical facilities for appointments. This program supports veterans in managing their transportation costs. It benefits NEMT providers by creating a steady demand for their services and ensuring veterans can access care without financial burdens.  
  • Veterans Transportation Service: With a budget of $35 billion, the Veterans Transportation Service offers transportation services to veterans traveling to and from VA and non-VA medical facilities for appointments. This program recognizes the importance of reliable transportation in ensuring veterans’ timely access to healthcare, and it presents a significant opportunity for NEMT providers to contribute to the seamless provision of transportation services to veterans.  
  • Highly Rural Transportation Grants: The Highly Rural Transportation Grants program receives an allocation of $29 billion to support states and localities in ensuring the availability of transportation services for veterans residing in remote rural areas. This program is crucial in funding transportation initiatives in underserved regions, empowering NEMT providers to expand their reach, bridge transportation gaps, and deliver essential services to veterans in geographically isolated areas.  

Additionally, the 2023 budget allocates $10 billion to support other initiatives, develop new transportation technologies, and expand partnerships with NEMT providers.   

Tobi Empowers NEMT Providers  

Tobi empowers providers to navigate the changing environment and capitalize on budget opportunities.   

Comprehensive Reporting and Analytics: Tobi provides NEMT providers with comprehensive reporting and analytics capabilities, offering valuable insights into key performance metrics. Providers can track trip data, monitor driver performance, analyze patient feedback, and identify areas for improvement. These data-driven insights enable informed decision-making, fostering continuous enhancements in service quality and patient satisfaction.   

Streamlined Operations: Tobi’s software solution streamlines daily operations for NEMT providers. Its scheduling and dispatching features enable efficient resource allocation, route optimization, and minimization of idle time. This results in reduced costs, enhanced vehicle utilization, and operational efficiency.   

Enhanced Billing and Claims Management: Tobi’s software automates billing and claims management processes, empowering NEMT providers to handle financial aspects efficiently. Automating documentation and streamlining claim submissions reduces manual errors and administrative burdens. This results in an optimized revenue cycle and improved financial performance.   

Choose Tobi Now   

Ready to streamline your NEMT operations and maximize your business potential? Discover the power of Tobi today. Get a personalized demo and take the first step toward operational excellence.