CMS PROJECTS 2.9 PERCENT INCREASE IN MEDICARE RURAL HOSPICE PROVIDER PAYMENT RATES

[CAL/AAEM News Service]

CMS PROJECTS 2.9 PERCENT INCREASE IN MEDICARE RURAL HOSPICE PROVIDER PAYMENT RATES 

August 26, 2004


The Centers for Medicare & Medicaid Services (CMS) today announced that 
payments to rural hospices are projected to increase $23 million in 
2005, a 2.9 percent increase over 2004.  For 2005 there is an overall 
projected increase of $60 million dollars to hospice providers, an 
increase of 1 percent for all hospices. 

"For millions of Medicare beneficiaries and their families, reliable, 
high-quality hospice care means they can spend their final days in the 
comfort of their own homes, especially in underserved areas of the 
country," Mark B. McClellan, M.D., Ph.D, Administrator of the Centers 
for Medicare & Medicaid Services, said today. "This payment increase 
helps ensure that beneficiaries in rural areas have access to the 
quality hospice services that they need." 

Hospice care was added as a benefit under the Medicare program in 1983 
and under Medicaid in 1985. In 2005, hospice services are expected to 
account for $6 billion in Medicare payments. 

Hospice care is covered under the Medicare Hospital Insurance program 
and is available to all beneficiaries enrolled in Medicare Part A. To be 
eligible, their physician and the hospice medical director must certify 
that they are terminally ill, with six months or less to live if their 
illness runs its normal course. When a beneficiary elects the hospice 
benefit, they are accepting palliative care geared towards physical, 
emotional, spiritual and psychological comfort for their terminal 
illness instead of the curative model of care. 

"As a result of improvements in how payments are calculated, Medicare 
payments for hospice services in rural areas will more accurately 
reflect costs," said Dr. McClellan. "Thousands of beneficiaries and 
their families can be comforted that Medicare will help with the high 
costs of this care." 

Beneficiaries can receive hospice services wherever they reside, be it 
at home, a nursing home, a hospital, or other facility or setting where 
the patient resides. Once in hospice, they may also continue to have 
Medicare coverage for treatment of other problems not related to their 
terminal illness. 


Source: Centers for Medicare & Medicaid Services (CMS) (http://www.cms.hhs.gov/) 


=====
Cyrus Shahpar & Brian Potts 
Managing Editors, CAL/AAEM News Service 
UC-Irvine


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