Hospices Brace for Medicare Sequestration, Return Could Be Devastating for Smaller Operators

Posted Sunday, February 2, 2022

Established in 2014 by the Budget Control Act, sequestration reduces Medicare payments to hospice and other health care providers by 2% across the board. Congress suspended the practice in 2021 through the CARES Act and has extended it several times since.

“Some providers have already reported having to turn away patients seeking hospice care, which means those patients are likely dying in hospitals, without hospice care, and with higher costs,” Edo Banach, president and CEO of the National Hospice and Palliative Care Organization (NHPCO), told Hospice News. “Cuts to Medicare payments to hospice will make those problems worse — forcing more people to die in hospitals instead of at home, reducing access to care, and increasing costs.”

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