CMS finalizes $340M payment bump for hospices in 2019

Hospices will see a 1.8 percent, or $340 million, payment increase in 2019 after CMS finalized its annual payment update. The payment increase was originally proposed in April 2018 and reflects a boost from the 1 percent increase hospices received in 2018.

The payment adjustment is based on a 2.9 percent inpatient hospital market basket update, reduced by a 0.8 percentage point multifactor productivity adjustment and reduced by a 0.3 percentage point adjustment required by law, according to CMS. 

Hospices that don’t meet the quality reporting requirements receive a 2 percent reduction to their payments.

The rule also includes a statutory aggregate that limits the overall payments made to a hospice annually. For 2019, the amount is set at $29,205.44—an increase of 1.8 percent from the 2018 cap amount. 

CMS outlined that it will no longer display the even component measures that are utilized to determine a composite measure on Hospice Compare. The information will still provide the public the ability to view these measures “in a manner that avoids confusion on Hospice Compare,” CMS stated. 

The rule also included updates to the quality reporting program for hospices, including finalizing a review and correction timeframes for data submitted using the Hospice Item Set (HIS), an extension of the Consumer Assessment of Healthcare Providers and Systems (CAHPS) hospice survey participation requirements and public reporting policy and procedures. 

In accordance with the Bipartisan Budget Act of 2018, physician assistant are recognized as attending physicians for Medicare hospice beneficiaries, the rule also noted. 

See the full rule here.

Amy Baxter

Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."

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