The
Centers for Medicare & Medicaid Services on Tuesday proposed a
rule that would trim Medicare hospice payments by 1.1% in FY 2010.
The
Medicare Hospice Wage Index was subjected to a temporary, 3.2% budget
neutrality adjustment factor (BANF) in 1997 in an attempt to make
hospice payments more accurate, and usher in a more modern approach
to reimbursements. A three-year phase out of the BANF was set to
begin in FY 2009 with a 25% reduction of the original adjustment, but
it was delayed by the American Recovery and Investment Act. Instead,
the phase out will begin in FY 2010 with a 75% reduction of the
adjustment, before it is entirely eliminated in FY 2011.
CMS says the
elimination of the adjustment will mean more accurate payments and
Medicare savings of $2.9 billion over five years.
According
to a Medicare Payment Advisory Counsel report, between 2009 and 2015,
Medicare expenditure on hospice services will grow at a faster rate
than those projected for skilled nursing, home health, hospital or
physician services. The rule is scheduled to be published in the
Federal Register on Friday. The comment period will last until June
22. For more information, visit
http://www.federalregister.gov/inspection.aspx.