CMS proposes policy to smooth annual hospice pay changes

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The Centers for Medicare and Medicaid Services wants to permanently cap annual hospice wage index adjustments so payments never decrease more than 5% from a prior year.

“We are proposing a policy that increases the predictability of hospice payments for providers, and mitigates instability and significant negative impacts to providers resulting from changes to the wage index,” says a proposed rule published Wednesday. Medicare adjusts hospice payments using a wage index that reflects geographical differences.

CMS also proposes a 2.7% increase in hospice payments for fiscal 2023, which would amount $580 million in additional reimbursements. Hospice providers would be limited to $32,142.65 per patient.

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