How to Become a Medicaid Transportation Provider

How to Become a Medicaid Transportation Provider

Medicaid is a U.S. government program that provides health insurance to low-income adults and children. The program's goal is clear: People who can’t afford medical care should still have access to it. 

But how can one gain access to healthcare if they don’t have the means to go to a medical or healthcare facility? This is precisely why one of the provisions of the federal law is that states must provide beneficiaries with the transportation they need. 

For entrepreneurs, becoming a Medicaid transportation provider is a good business option. 


What is Medicaid Transportation?

Medicaid transportation is a service that ensures beneficiaries can get to their medical or healthcare appointments at the scheduled time at no cost to them. The transport is non-emergency in nature, which includes pre-scheduled trips to primary care providers and even the dentist. 

Some 3.6 million Americans miss their medical appointments every year because of the lack of transportation. Fortunately, the growth of the NEMT industry can help meet this need and remove the transportation barrier to healthcare access

To take your business to the next level and pursue becoming a Medicaid transportation provider, you will go through several steps. 

The Qualifications for Medicaid Transporter

The Qualifications for Medicaid TransporterLet’s tackle how to become a Medicaid transportation provider. What are the Medicaid transporter? The two are separate—you should complete your NEMT requirements to operate your business. 

Once the NEMT business is operational, you can submit a medical transportation provider application. The state implements Medicaid, so you apply locally. Each state has different regulations, so look them up before seeking medical transportation contracts. Usually states give trips to brokers, so to get Medicaid trips you need to find out whether there is a broker in your state, that distributes those.  

We’ve covered more in-depth how to start an NEMT business

Basic requirements include the following:

Business Permits and Licenses

Businesses must apply for local permits to ensure they provide good service to the community. 


Businesses must also have different types of insurance. It is a Medicaid mandate but also highly beneficial to the company as it can help save money, effort, and time in the long run. 

What are some of the essential insurance options for a medical transportation business?

  • General liability
  • Physical damage insurance for vehicles
  • Property damage
  • Worker’s compensation
  • Data breach
  • Professional liability
  • Employment practices liability 

You might want to watch our webinar recording on strategies to save on NEMT insurance

The American Disabilities Act Compliance

Vehicle providers must comply with some basic requirements in the American Disabilities Act (ADA) to ensure their fleet is accessible to persons with disabilities. 

Here are some of the requirements:

  • Wide entry that can accommodate wheelchairs and other mobility devices
  • Wheelchair lifts and platforms
  • Ramps
  • Handrails
  • Space allowances and appropriate lighting

NEMT Software

NEMT software is crucial to ensure maximum efficiency. Cutting-edge digital tools will help with billing, scheduling, route optimization, dispatching, and more. 

How NEMT Software Improves Medical Transportation Business

How NEMT Software Improves Medical Transportation BusinessWhen you have all the requirements, you will likely get approval from your local Department of Health. After all, medical transportation is a necessity for many. 

An essential element to the success of a business is NEMT software with features that include:

Schedule Optimization

NEMT vehicles can be expensive, but you can maximize the use of a limited fleet by scheduling multiple passengers in one trip. It is economical and also good for the environment. 

Vehicle Selection

Not all Medicaid beneficiaries have the same NEMT requirements. As there are different types of NEMT services, different vehicles need to be dispatched. Some are ambulatory, while others need wheelchairs or stretchers. NEMT software can help you smoothly schedule specific vehicles, qualified drivers, and passengers with special mobility needs. 

Billing Accuracy

Errors in billing will harm all parties concerned. It is bad for business because mistakes could lead to claim rejections or denials. Passengers may be overcharged, which can take time to reverse. Such mistakes can also damage the NEMT provider’s reputation. 


Providing Medicaid transportation can be lucrative as long as you can submit all of your Department of Health’s requirements. It also helps that Medicaid’s updated guidelines include rate increases, so your NEMT company will be compensated fairly.

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About the author

Yurii Martynov
Yurii Martynov

As RouteGenie's Marketing Director, Yurii gained deep knowledge in the NEMT industry. He is an expert in marketing, utilizing all marketing channels to build RouteGenie's brand and to make sure NEMT providers have access to powerful NEMT software that can boost their growth. Yurii shares his knowledge by writing content on topics related to marketing, and the healthcare industry: medical transportation, home care, and medical billing.  The author assumes no responsibility or liability for any errors or omissions in the content of this site. The information contained in this site is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness.