FY 2023 Hospice Wage Index and Payment Rate Update Final Rule Summary
On July 27, 2022, CMS published in the Federal Register (87 FR 45669) a final rule updating the Medicare hospice payment rates, wage index, the cap amount, and the quality reporting requirements for federal fiscal year (FY) 2023. This rule finalizes a permanent, budget neutral approach to smooth year-to-year changes in the hospice wage index by applying a permanent cap on negative wage index changes greater than a 5 percent decrease from the prior year. This rule also updates the Hospice Quality Reporting Program and includes updates on the development of a patient assessment instrument, titled the Hospice Outcomes and Patient Evaluation tool, and the Consumer Assessment of Healthcare Providers and Systems. This rule also discusses a request for information on health equity. CMS estimates the overall impact of the final rule will be an increase of $825 million (3.8 percent) in Medicare payments to hospices during FY 2023.