Home Health & Hospice Week

Medicare payment rates for hospice to increase 3.3 percent.

Even though Medicare's home health agency payment updates are on a calendar-year schedule now, you'll still receive your hospice update Oct. 1.

The Centers for Medicare & Medicaid Services will increase hospice payment rates by 3.3 percent for the fiscal year starting Oct. 1, the agency says in June 29 Transmittal No. 1280 (CR 5685). That would put routine home care (651) at $135.11, continuous home care (652) at $788.55 (an hourly rate of $32.86), inpatient respite care (655) at $139.76 and general inpatient care (656) at $601.02.

The hospice cap for the cap year ending Oct. 31 will be $21,410.04, CMS says.

Hold up: You may not want to count on that reimbursement rate just yet. Lawmakers could still reduce 2008 payment rates as proposed by President Bush (see Eli's HCW, Vol. XVI, No. 6).

And don't forget to split your hospice claims for episodes that begin in FY 2007 and end after Sept. 31 in FY 2008. "As the new rates take effect Oct. 1 ... split claims if the dates of service span the separate fiscal years," the National Association for Home Care & Hospice advises in its newsletter to members. "If a hospice chooses not to do so, the [intermediary] will pay the entire claim at the old rate."

Note: The transmittal is at www.cms.hhs.gov/transmittals/downloads/R1280CP.pdf.