Air Ambulance Medicare Accreditation and Accountability Act

Air Ambulance Medicare Accreditation and Accountability Act - Amends title XVIII (Medicare) of the Social Security Act to condition Medicare payment for air ambulance services upon: (1) provision by the supplier or service provider for appropriate medical oversight by a physician, and (2) accreditation of the air ambulance as level III or higher.

Directs the Secretary of Health and Human Services (HHS) to: (1) establish a process for accrediting air ambulances according to three specified levels of accreditation, from lowest to highest; (2) consider certain factors in designating accreditation organizations; (3) establish criteria for use by an accreditation organization to evaluate an air ambulance; and (4) establish certain requirements for the collection of related data.

Prohibits reimbursement for air ambulance services under a state plan under SSA title XVII (Medicaid) unless the state develops licensing and regulatory requirements for such services that comply with federal guidelines.

Directs the Secretary to establish a revised air ambulance rate structure under the Medicare fee schedule. Requires sole community air ambulance services originating in a rural area to be reimbursed at a higher rate than for services by a non-sole community air ambulance.

Requires the Secretary to reduce the update for ambulance services for the failure of suppliers and providers to submit certain quality data to the Secretary .

Authorizes the Secretary to arrange with the Institute of Medicine of the National Academies to study ground critical care transport.