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An Analysis and Commentary on Federal Health Care Issues by Larry Goldberg

CMS Releases Proposed FY 2021 Hospice Wage Index and Payment Rate Update

The Centers for Medicare and Medicaid Services (CMS) have issued a proposed rule that would update hospice payment rates, wage index values, and cap amount for fiscal year (FY) 2021.

This rule also proposes changes to the hospice wage index by adopting the most recent Office of Management and Budget statistical area delineations, with a 1-year 5.0 percent cap on any reductions.

Finally, this proposed rule summarizes the changes to the hospice election statement finalized in the FY 2020 Hospice Wage Index and Rate Update final rule, and provides hospices with a model election statement and sample addendum.

The 56-page document is scheduled for publication in the Federal Register on April 15 . A copy is currently available at: https://s3.amazonaws.com/public-inspection.federalregister.gov/2019-08143.pdf. This link will change upon publication. A 60-day comment period ending June 9 is provided.

CMS says the overall economic impact of this proposed rule is estimated to be $580 million in increased payments to hospices for FY 2021.

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