Arizona Raises Its Rural NEMT Mileage Rate to $1.63 a Mile on October 1, 2026

For fee-for-service trips on or after October 1, 2026, Arizona’s Medicaid agency, AHCCCS, pays $1.63 per loaded mile for procedure code S0215 billed with the TN (rural) modifier. The rate was $1.53. AHCCCS proposed the change in a preliminary rates notice posted July 24, 2026, took comments until August 24, 2026, and made it final in a notice posted September 30, 2026.

It is the only change to Arizona’s ground NEMT fee schedule on October 1, 2026. AHCCCS says the higher rate is meant to pay rural providers adequately for unmaintained or dirt roads, long drives to reach members, and a lack of providers in the area.

What changed

Item	Detail
Code	S0215, non-emergency transportation mileage, per mile, with modifier TN
Old rate	$1.53 a loaded mile, the same in every schedule since the one effective October 1, 2020
New rate	$1.63 a loaded mile, up 10 cents (about 6.5 percent)
Applies to	Fee-for-service trips with dates of service on or after October 1, 2026
Preliminary notice	Posted July 24, 2026, comments due August 24, 2026
Final notice	Posted September 30, 2026
Unchanged	Urban S0215 at $1.28, and every other ground NEMT code
Rideshare rate	The separate rate for rideshare companies, set only for the health plans’ capped schedule, stays at $0.92 for rural S0215

The gap between rural and urban mileage grows from 25 cents to 35 cents a mile. Rural S0215 now sits 3 cents below rural wheelchair van mileage.

Which trips get $1.63

AHCCCS sorts trips by where they start. Trips that start inside the Phoenix or Tucson metro areas are urban. Every other trip is rural and must carry the TN modifier, under Chapter 14 of the fee-for-service billing manual (revised July 31, 2026).

S0215 is the general mileage code. Wheelchair vans and stretcher vans bill their own base and mileage codes, and none of those moved on October 1, 2026:

Service	Urban	Rural (TN)
Base rate per trip, A0120 (minibus, mountain area, and other)	$6.64	$7.27
Mileage, S0215	$1.28	$1.63, was $1.53
Wheelchair van base rate, A0130	$11.15	$12.21
Wheelchair van mileage, S0209	$1.54	$1.66
Stretcher van base rate, T2005	$49.09	$86.70
Stretcher van mileage, T2049	$1.54	$1.66

The notice sets what AHCCCS itself pays for fee-for-service members. They include the American Indian Health Program (AIHP), which had 93,867 members in September 2026, counting its members with a serious mental illness designation. Chapter 14 says NEMT pay depends on the code billed, not the member type, so the rate is the same for fee-for-service and ALTCS members. Most AHCCCS members are in health plans. If you drive for a plan or its broker, your contract sets your rate, so ask whether it follows the AHCCCS schedule. The Arizona state guide lists each plan and how it buys rides.

What a rural trip pays now

These examples use the rural base rate for A0120, $7.27, plus S0215 mileage. Only loaded miles count.

One-way trip	Through September 30, 2026	From October 1, 2026	Difference
10 loaded miles	$22.57	$23.57	$1.00
25 loaded miles	$45.52	$48.02	$2.50
50 loaded miles	$83.77	$88.77	$5.00
100 loaded miles	$160.27	$170.27	$10.00

Here is a hypothetical standing order. A rider lives 30 miles from a clinic and goes three days a week, round trip. Each visit pays two base rates plus 60 loaded miles: $106.34 before and $112.34 after. That is $18 more a week for one rider. For the math on empty miles and long waits, see rural NEMT.

Billing rules that still apply

The new rate does not change how you bill. Chapter 14 and Chapter 4 of the billing manual still require:

• One claim per member per day. Trips go on line 1, loaded miles on line 2, and wait time on line 3. A claim with only the base rate, followed by one with only the miles, is denied as split billing.
• No empty miles. You may not bill unloaded mileage, including a trip to pick up a member’s prescription without the member.
• Prior authorization past 100 miles. It is needed when one member’s trips on one day add up to more than 100 miles.
• The AHCCCS Daily Trip Report goes with every claim.
• Timely filing. A claim is due within 6 months of the date of service. A claim filed on time can be corrected until 12 months after the date of service.

For how per-mile codes work across states, see S0215 and NEMT mileage billing.

What to do now

1. Load $1.63 for rural S0215 on trips from October 1, 2026. Trips on or before September 30, 2026 stay at $1.53.
2. Check the TN modifier on every trip that starts outside the Phoenix and Tucson metro areas. Without it, the mileage pays the urban $1.28.
3. Compare your first October remittance to the new rate. If a rural mileage line paid $1.53, file a replacement claim with the original claim reference number, within 12 months of the date of service. See corrected NEMT claims.
4. Ask each health plan or broker whether its rates follow the AHCCCS schedule, and whether it will match the change.
5. Reprice rural routes. Ten cents a mile adds up on long dialysis and specialty runs, so rerun the numbers before you turn down a far trip.