This final rule updates the hospice payment rates and the wage index for fiscal
year (FY) 2014. The budget neutrality adjustment factor (BNAF) phase-out will continue with successive 15 percent reductions in FY 2015 and FY 2016. BNAF reduction in FY 2014 will be 70 percent. This final rule also clarifies how hospices are to report diagnoses on hospice claims, and provides updates to the public on hospice payment reform. Additionally, this final rule changes the requirements for the hospice quality reporting program by discontinuing currently reported measures and implementing a Hospice Item Set with seven National Quality Forum (NFQ) endorsed measures beginning July 1, 2014 and will implement the hospice Experience of Care Survey on January 1, 2015, as proposed.