CHA News Article

CMS Issues Proposed Rule for FFY 2021 Hospice Payment Rate
CEOs, CFOs, post-acute care executives, government relations executives

The Centers for Medicare & Medicaid Services (CMS) has issued the federal fiscal year (FFY) 2021 proposed rule for hospice payment rates. The provisions in the proposed rule, if finalized, would be effective Oct. 1, 2021. 

CMS proposes a 2.6% increase, or $580 million, in hospice payments for FFY 2021. The proposed payment update is based on an estimated 3% inpatient hospital market-basket update reduced by a 0.4 percentage points multifactor productivity adjustment. Additionally, CMS proposes to raise the annual payment cap to $30,743.86 — up from the 2020 cap of $29,964.78 — to reflect the FFY 2021 2.6% payment increase.  

CMS also proposes changes to the hospice wage index by adopting the most recent Office of Management and Budget statistical area delineations, with a 5% cap on wage index decreases.  

In the proposed rule, CMS summarizes changes to the hospice election statement that was finalized in the FFY 2020 rule and provides a model election statement and sample addendum. 

CHA is currently reviewing the proposed rule and will provide a summary in the coming weeks. Comments are due to CMS by 2 p.m. (PT) on June 9. 

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