CHA News Article

CMS Issues Final Rule for FFY 2015 Medicare Hospice Wage Index and Payment Rates

On Aug. 1, the Centers for Medicare & Medicaid Services (CMS) issued a final rule to update the Medicare hospice payment rates and wage index for federal fiscal year (FFY) 2015. Under the rule, hospices will see an estimated 1.4 percent ($230 million) increase in their payments for FFY 2015. The increase is the net result of a payment update of 2.1 percent to the hospice per diem rates (a “hospital market basket” increase of 2.9 percent minus 0.8 percent for reductions required by law), and a 0.7 percent decrease in payments due to updated wage data and the sixth year of CMS’ seven-year phaseout of its wage index budget neutrality adjustment factor (BNAF). The complete final rule is attached.