FY2021 payment rates and the wage index will be updated for hospices who serve Medicare beneficiaries as part of the proposed hospice payment rule, posted on the Federal Register April 19.
 
CMS recognizes that the current focus of the health care industry is on responding to the COVID-19 pandemic, according to a fact sheet on CMS’ website.
 
As a result, the proposed rule addresses this through the inclusion of proposals required by statute and that affect Medicare payment to hospices and proposals that help reduce burden on providers during this time, according to CMS’ fact sheet.
 
Here are a few important points proposed in the rule:
  • A 2.6% or $580 million increase in payments for FY2021. This increase is based on an estimated 3% inpatient hospital market basket update reduced by the multifactor productivity adjustment (0.4 percentage points), according to CMS’ fact sheet. Note: Hospices that fail to meet quality reporting requirements receive a 2-percentage point reduction to the annual market basket update for the year, CMS adds.
  • The proposed hospice cap for FY2021 cap year is $30,743.86.
  • An adjustment to account for differences in area wage levels by using revised geographic delineations provided by the Office of Management and Budget.
 
Comments on the proposed rule will be accepted through June 9, 2020
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For more information, visit https://go.cms.gov/2wFzEOi.