Hospice Reimbursement: Hospice Payment Rates To Increase 2.5% In October

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Note:  The following article synopsis was NOT provided by AAPC. It was created by Find-A-Code/innoviHealth.

Article Overview

This article explains recent Medicare hospice reimbursement updates, including the annual payment-rate change for fiscal year 2012, the continuing phase-out of a budget neutrality adjustment, and revisions to hospice cap calculation methods. It also summarizes CMS clarification on cap determination reopening timeframes and references comments from hospice industry organizations. The content is relevant to hospice billing, reimbursement, and compliance professionals tracking CMS rulemaking and payment policy changes.

Why This Topic Matters

Hospice providers need to monitor Medicare payment updates and cap methodology changes because they affect reimbursement planning, regulatory compliance, and financial forecasting. This article helps readers understand the scope of CMS hospice policy changes and the organizations responding to them.

Article Sections

  1. Medicare hospice payment update for FY 2012

    Summarizes the annual hospice payment-rate update announced for the upcoming fiscal year and the related CMS rulemaking context. It also notes how the update is framed within Medicare reimbursement policy.

  2. Budget Neutrality Adjustment Factor and inflation update

    Discusses the interaction between the budget neutrality adjustment and the market basket inflation update. The section also notes industry reactions and CMS clarification on how the figures relate.

  3. Hospice cap amount and calculation methodology

    Covers the annual hospice cap setting process and the transition to a different cap calculation approach. It also mentions the grandfathering option for certain hospices and the timing of the methodology change.

  4. Reopening timeframes for cap determinations

    Summarizes CMS clarification regarding the time limits for reopening cap determination letters. It also references the exception involving suspected fraud.

What You Will Learn

  • How CMS framed the hospice payment-rate update for fiscal year 2012
  • How the budget neutrality adjustment interacts with the annual inflation update
  • What the article says about hospice cap amounts and methodology changes
  • What CMS clarified about reopening timeframes for cap determinations

Who Should Read This

  • Hospice administrators
  • Medical coders
  • Billing and reimbursement staff
  • Revenue cycle professionals
  • Compliance teams
  • Healthcare consultants

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