Price Increase Letter to Customers: Templates for Facilities, Families, and Public Buyers

A price increase goes down easiest when the customer hears it from you, in writing, with a date and a reason, before the next invoice or the next ride. A facility with a signed agreement needs the notice that agreement requires. A family with three dialysis rides a week needs to know the new price per ride. A county or school needs a request that follows its own contract clause. This page gives you one letter for each, and a rate table that goes in all three.

The letters cover prices you set or negotiate yourself. For Medicaid and broker rates, which someone else sets, see NEMT rate increases. For how to work out the new price, see NEMT fuel surcharges and how much to charge for NEMT. This page is the letter.

How to use this template

1. Find the clause that lets you change the price. For a facility, it is the rate-change term in the facility transportation agreement. For a family, it is the price-change term in the NEMT service agreement. For a county or school, it is the price adjustment clause in the contract. Write down the section number and the days of notice.
2. Set the new prices before you write. Build them from your costs, or apply a rule your contract already names, such as an index change or a fuel formula. Fill in Part 1 with each old rate, new rate, and start date.
3. Choose a reason you can prove. Part 2 pairs each plain-words reason with the document that backs it. State one reason, not four.
4. Count the notice days the way the contract does. Add them to the day the contract counts from. If it does not say, count from the day the letter is delivered, which is why you keep proof of delivery. Then round up to the first of a month or the start of a billing cycle.
5. Pick the letter. Use Letter A for a facility, Letter B for a family, and Letter C for a county or school. Delete every bracketed line that does not apply.
6. Send it the way the contract says, and keep proof. Enclose the new Schedule A with a facility letter and ask for a signed copy before the start date. Tell a family before their next booking. Send a public buyer the request before you invoice the first month at the new price.
7. Decide what happens to rides already quoted. A written quote for a long-distance trip, or a ride booked with a deposit, is usually best honored at the quoted price. Say which in the letter.
8. Issue a new dated rate sheet and file the old one. A dated sheet shows what you charged on any date of service. Record each letter in Part 6.

The template

Part 1: What is changing

Copy each old rate from your current dated rate sheet or Schedule A, and fill in the new one. Write “no change” on any line that stays.

Rate	Old rate	New rate	Starts on	Reason in plain words
Base fee, walking rider
Base fee, wheelchair
Base fee, stretcher
Each mile with rider aboard
Waiting, each 15 minutes
Other lines from your rate sheet

Part 2: The reason, in plain words

Pick one line, fill in the blanks, and attach the proof. Describe the change as your price. Never call it a tax or a charge the law requires.

Reason	Say it this way	Attach
Fuel	Gas prices have risen. Regular gasoline in our region averaged $______ a gallon for the week of , up from the $ our rates were built on.	EIA’s weekly price page for your region or state
Insurance	Our vehicle insurance premium rose from $______ to $______ a year at our renewal on ______.	The renewal notice or the insurer’s premium letter
Driver pay	We raised driver pay to $______ an hour on ______.	Nothing. Keep the payroll record on file.
General costs	Prices overall rose ______ percent between ______ and ______, and our costs rose with them.	The BLS CPI-U change for those two months

Part 3: Letter A, a facility under a written agreement

[Your letterhead]

Date: ______________

To: ______________________________ (the contact named in Schedule B of the agreement, and the billing contact)

Subject: Notice of rate change under section ______ of our Transportation Services Agreement dated ______________

Dear ______________:

Thank you for choosing [Company] for your riders. Under section ______ of our agreement, this is written notice of a change in our rates.

The new rates are in the enclosed Schedule A dated ______________. They start on ______________, which is at least ______ days after you receive this notice, and they apply to rides on or after that date. Rides before that date stay at the rates in the Schedule A dated ______________.

Rate	Current	New

The reason for the change: ______________________________ (one sentence from Part 2). The enclosed ______________ shows the figures.

[If your agreement requires it:] Under section ______, a rate change starts only after both of us have signed the new Schedule A. Please sign and return the enclosed copy by ______________. If you would like to talk it over first, call ______________ at ______________ by ______________, and we will meet before the start date.

Sincerely,

______________________________ (name, title, phone, email)

Enclosed: new Schedule A, signed by [Company]; ______________ (the proof for the reason).

For [Facility]: Signature ______________________________ Printed name ______________________________ Title ______________ Date ______________

Part 4: Letter B, a private-pay family with standing rides

[Your letterhead]

Date: ______________

To: ______________________________ (the rider and the payer, if different)

Subject: New prices for your rides starting ______________

Dear ______________:

Thank you for riding with [Company]. Our prices are changing on ______________. Rides on or after that date cost the new prices below. Rides before that date stay at your current price. [Trips already booked with a written quote keep the quoted price.]

Your ride	Current price, one way	New price, one way
______________ (days, times, pickup, destination)	$	$
______________	$	$
______________	$	$

Each new price is the full price of the ride, with every fee included. For the rides listed above, your cost each week changes from $______ to $______.

Why the change: ______________________________ (one sentence from Part 2).

[If a card is on file:] We will charge the new price to the card on file starting with the ride on ______________.

You do not have to accept the new prices. You may stop your rides or end your agreement at any time by telling us at ______________ (phone, email, or address). Rides already given stay due at the price they were booked at.

Call ______________ at ______________ with any question.

Sincerely,

______________________________ (name, title, phone, email)

Part 5: Letter C, a request to a county or school buyer

[Your letterhead]

Date: ______________

To: ______________________________ (the contract manager or contracting officer named in the contract)

Subject: Request for price adjustment under section ______ of Contract ______________

Dear ______________:

[Company] asks for a price adjustment under section ______ of Contract ______________, dated ______________, for ______________ (the service or routes).

The clause. Section ______ says: ______________________________ (the trigger, the index, the formula, and the timing, in the contract’s own words).

The request. Change the ______________ (unit rate, route per diem, or fuel surcharge) from $______ to $______, starting with the service month of ______________.

The calculation. Index: ______________ (series, area, and month). Value in the base month: ______. Value in the latest month: ______, released ____________. Change: ______ percent. Formula: __________. Result: $. [If the contract gives a request form, it is enclosed.]

The reason: ______________________________ (one sentence from Part 2). The supporting data is enclosed: ______________.

[If the clause has a cap or limit:] This request stays within the contract’s limit of ______________.

Please confirm in writing whether you approve the request, and tell us any form or modification you need from us, by ______________. We will keep providing service at the current price until you do, and we will not invoice the new price before you approve it.

Sincerely,

______________________________ (name, title, phone, email)

Enclosed: ______________ (request form, index data, and supporting documents).

Part 6: Sending record

Customer	Letter used (A, B, or C)	Date sent and how	Proof of delivery	Starts on	Signed or approved on

Who gets which letter, and who gets none

• A facility with a written agreement gets Letter A. The facility template lets a rate change take effect only after written notice and a new Schedule A signed by both sides, so the letter encloses the new schedule and asks for a signature.
• A rider or family who pays gets Letter B. The service agreement template ties a price change to a set number of days after you tell the payer in writing.
• A county, school district, or other public buyer gets Letter C, under the price adjustment clause. With no such clause, the price changes only by a contract modification both sides sign.
• A Medicaid member gets no letter for a covered ride. Federal rule 42 CFR 447.15 limits Medicaid to providers who accept the agency’s payment, plus any copay the state plan requires, as payment in full. There is no private price to raise. NEMT rate increases covers the rates a state, plan, or broker sets.

What a facility agreement needs from your notice

Count the contract’s notice days the way it counts them, and send the new Schedule A with the letter, because the facility template starts a new rate only when both sides have signed it. Keep the same price for every facility with similar volume, as that template’s compliance part says.

The federal personal services safe harbor asks that the method for setting a facility’s payments to you be set in advance (42 CFR 1001.952(d)). A CPI escalator or a fuel formula written into the agreement at signing meets that. Any other change in the middle of a term belongs in a signed amendment your lawyer has reviewed. See anti-kickback rules for NEMT.

Quote families one price for each ride

California’s Civil Code 1770(a)(29) bars advertising, displaying, or offering a price for a service that leaves out a mandatory fee, other than taxes or fees the government imposes on the transaction. It covers services sold to a consumer. So in Part 4, give the new price as the full price of the ride, with any fuel part already inside it, rather than a base price and an add-on. NEMT fuel surcharges lists the similar rules in Minnesota, Colorado, and Massachusetts and shows how to build the fuel part. A facility under a written agreement follows the agreement instead.

Standing riders in California

California’s automatic renewal law reaches a continuous service, which it defines as a plan or contract provision in which a paid subscription or purchasing agreement continues until the consumer cancels (Business and Professions Code 17601). A standing-ride agreement that keeps charging a family’s card until they cancel may fit that description, and your California lawyer can say whether yours does.

When it does, a change in the fee must come with a clear notice of the change and information on how to cancel, in a form the consumer can keep. The notice must reach the consumer no less than 7 days and no more than 30 days before the fee change takes effect (17602(g)(2)). That applies to contracts entered into, amended, or extended on or after July 1, 2025 (17602(j)). Letter B carries both the notice and the way to cancel, so sending it 7 to 30 days before the start date meets the California timing whether or not your agreement counts as a continuous service. If your agreement asks for more days of notice, send the letter that early, and send it again inside the 7 to 30 day window.

Raise every rider’s price by the same method

DOT’s rule says an entity shall not impose special charges, not authorized by the rules, on individuals with disabilities, including individuals who use wheelchairs, for services the rules require or that are needed to accommodate them (49 CFR 37.5(d)). Whether a higher price for a wheelchair ride is a special charge is a legal question, and the rate sheet template and ADA requirements for NEMT cover it. In the increase, raise each line by the same method, and never add a charge that applies only to riders with disabilities. Have a transportation attorney read the rate table before you send it.

Proof you can attach

A reason with a number and a source is harder to argue with than a reason alone.

• Fuel. EIA posts weekly pump prices, usually on Tuesday, for the U.S., nine regions, nine states, and ten cities. For the week of October 5, 2026, regular gasoline averaged $4.354 a gallon across the U.S., up $1.230 from a year earlier and down 11.1 cents from the week before. The Midwest averaged $4.109 and the West Coast $5.727. The next release is October 14, 2026.
• General costs. The consumer price index for all items rose 3.4 percent over the 12 months through August 2026, not seasonally adjusted, and gasoline rose 27.4 percent (BLS, released September 11, 2026). Use the U.S. city average and data that is not seasonally adjusted, as BLS advises, and name the series in your letter. NEMT fuel surcharges lists BLS’s tips. The September index is due October 14, 2026.
• Insurance. The national motor vehicle insurance index fell 0.8 percent in August 2026 after a 0.3 percent drop in July, so it cannot prove a rise in your own premium. Attach your renewal notice.

The percent change is the later index minus the earlier one, divided by the earlier one. Here is a worked example that applies the 3.4 percent change to the example prices in the rate sheet template, rounded to the nearest 5 cents.

Line	Current	After 3.4 percent
Base fee, one way	$32.50	$33.60
Each loaded mile	$2.80	$2.90
Waiting, each 15 minutes	$16.25	$16.80
A 12-mile ride, one way	$66.10	$68.40

That is $2.30 more for a 12-mile ride, or $13.80 more in a week for a rider who takes six one-way rides. Part 4 puts the weekly change in one line so the family sees it. If you last set your prices more than a year ago, use the CPI change since that month instead. NEMT fuel surcharges explains when to use a yearly index and when to use a fuel formula.

Public buyers: follow the clause

A county, school, or agency pays under its own contract, and its price clause is the rule. Three examples show what to expect.

• Fuel clause with approval. Hamilton County, Ohio’s NEMT contract, approved on July 16, 2026, pays a fuel surcharge only after the county approves the request in writing, and approves none for a service month that was already invoiced. Send Letter C before you invoice the month (Hamilton County).
• The federal labor and material clause. FAR 52.216-4 asks the contractor to give notice within 60 days after a change in a labor rate or a material price shown in the contract schedule, with a proposal and supporting data on the cause, the effective date, and the amount. The contractor keeps performing while the sides agree. NEMT fuel surcharges lists its limits. Copy its notice items for Letter C even when your contract is not federal.
• New Jersey school routes. An annual extension of a competitively bid route contract may not raise the annual amount by more than the annual CPI change, unless the original bid provided for an added aide, a route change for a new rider, or safety concerns, and the county superintendent approves it (N.J.A.C. 6A:27-9.13). The Department of Education lists 3.58 percent for 2026-2027 renewals, on a page updated October 5, 2026. See New Jersey school transportation contracts.

Once the price is approved, invoice at it exactly. A prompt payment clock starts only when the buyer receives a proper invoice, as local government prompt payment acts explains.