Delta Connect Blog

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.

The Centers for Medicare and Medicaid Services (CMS) released Change Request (CR) 8358, Additional Data Reporting Requirements for Hospice Claims.  The implementation date on the CR is January 6, 2014. There is, however, additional voluntary reporting and mandatory reporting dates which are outlined below. CMS states that the additional claims data supports hospice payment reform as authorized by the ACA.  Last month, NAHC and its affiliate, the Hospice Association of America (HAA), sent comments to CMS on the Proposed Rule:  Medicare Program; FY2014 Hospice Wage Index and Payment Rate Update; Hospice Quality Reporting Requirements; and Updates on Payment Reform (CMS-1449-P). 

As part of an April 29, 2013 release, “Proposed Rule: Medicare Program;FY2014 Hospice Wage Index and Payment Rate Update; Hospice Quality Reporting Requirements; and Updates on Payment Reform” (CMS-1499-P), the Centers for Medicare & Medicaid Services (CMS) included information about progress to date on research to develop a new hospice payment system - including discussion of several options that could be used in concert to reform hospice payments. Options discussed include: