CMS Set Hospice Payment Increase at 3.8% for 2023

Posted Friday, July 29, 2022

FY 2023 Routine Annual Rate Setting Changes

The FY 2023 hospice payment update percentage is 3.8% (an estimated increase of $825 million in payments from FY 2022). This is a result of the 4.1% market basket percentage increase reduced by a 0.3 percentage point productivity adjustment. Hospices that fail to meet quality reporting requirements receive a 2%-point reduction to the annual hospice payment update percentage increase for the year.

The hospice payment update includes a statutory aggregate cap that limits the overall payments per patient that is made to a hospice annually. The cap amount for FY 2023 is $32,486.92 (FY 2022 cap amount of $31,297.61 increased by 3.8%).

Hospice Quality Reporting Program

The final rule provides an update on the development of a patient assessment instrument, titled Hospice Outcomes and Patient Evaluation (HOPE). This includes an update on the beta testing and derivatives that will be achieved during this phase of testing, such as burden estimates and timepoints for collection, as well as additional outreach efforts that will be conducted during and after beta testing and during our planned adoption process. CMS also discusses potential future quality measures within the HQRP based on HOPE and administrative data, including HOPE-based process measures and hybrid quality measures, which could be based upon multiple sources that include HOPE, claims and other data sources. CMS appreciates the public comments we received on these updates.

This rule provides an update on testing conducted for the CAHPS Hospice Survey, which is used to collect data on experiences of hospice care from primary caregivers of hospice patients. CMS is providing an update on a survey-mode experiment whose goal was to test the effect of adding a web-based mode to the CAHPS Hospice Survey.

Click here for the full announcement.

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