CMS Publishes Final Rule for Hospice Payments in Fiscal Year 2022

On August 4, 2021, the Centers for Medicare and Medicaid Services (CMS) published the final rule for hospice payments in fiscal year (FY) 2022 in the Federal Register. This rule takes effect October 1, 2021.

Final Changes to Hospice Payments

CMS finalized the following updates to the hospice regulations for inflation factors, wage adjustments, and cap amounts for FY 2022.

Table of Hospice payments that meet quality standards vs hospice payments that didn't meet quality standards

Other Notable Updates

Hospice Cap Amount

The finalized hospice cap amount increased to $31,297.61 for FY 2022 from $30,683.93 in FY 2021.

Economic Impact

The overall economic impact of the proposed FY 2022 changes constitutes a $480 million increase in payments from FY 2021.

Next Steps

Hospice providers need to review whether they have loaded appropriate rates into the patient accounting system they use to bill Medicare on or after October 1, 2021.

Once they incorporate these revised rates, the providers can use best practices to validate that the rates calculate appropriately. For example, the providers can review the Medicare remittance advice to ensure a hospice receives the payment they expect.

We’re Here to Help

For more information about the final rule or the revised rates during the course of your validation review, contact your Moss Adams professional.

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