Medicare payments to hospices to rise by 3.7% in FY 2006

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Hospices will receive a 3.7% increase in Medicare payments in fiscal year 2006, according to the Centers for Medicare & Medicaid Services, which recently disclosed its annual hospice payment update.

The payment update equals the total marketbasket percentage increase predicted for FY 2006.

CMS also reduced the hospice cap for the year ending Oct. 31 to $18,963. The cap amount is updated annually at the end of the cap period. Overall aggregate payments made to a hospice are subject to a cap amount, the Medicare Claims Processing Manual said. 

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