May 1—Hospices would see an estimated 1.1 percent ($180 million) increase in their FY14 Medicare payments under a Centers for Medicare & Medicaid Services (CMS) proposed rule updating FY14 Medicare payment rates and the wage index for hospices serving Medicare beneficiaries.

The hospice payment increase would be the net result of a proposed hospice payment update to the hospice per diem rates of 1.8 percent (a “hospital market basket” increase of 2.5 percent minus 0.7 percentage point for reductions mandated by law) and a 0.7 percent decrease in payments to hospices due to updated wage data and the continued phase-out of CMS’s wage index budget neutrality adjustment factor. 

The proposed rule also seeks to clarify appropriate diagnosis coding in hospice claims to gain a better understanding of the patients who are served by the Medicare hospice program.

Publication Date: Wednesday, May 01, 2013