The bill's sponsor said this would ensure ambulance companies are getting 100 percent reimbursement of the Medicare rate.
The legislation was submitted in response to the closure of ambulance services, especially in rural areas where ambulances sometimes have to travel long distances, said Senate President Troy Jackson, D-Allagash.
"Many times they have to transport to Bangor and Portland and things like that. You know it just costs money and the reimbursement system we have right now, we're falling further and further behind," he said.
The bill underwent a public hearing Wednesday before the Health and Human Services Committee.
If the measure moves forward, the new reimbursement rate would take effect in September.