Policy Updates

Skilled Nursing Facility Alert: Hospice Payment Rate Update — Action Required by October 2024

By CLV IntelligenceSource published August 6, 2024

Key changes to hospice payment rates and documentation requirements effective October 1, 2024.

Action required by

October 1, 2024

Review the Action Required section below and ensure your team has completed all compliance steps before this date.

The Federal Register Final Rule for the Medicare Program regarding the FY 2025 Hospice Wage Index and Payment Rate Update introduces several key changes effective September 30, 2024. The hospice wage index will be updated, impacting payment rates for hospice services, and the aggregate cap amount has been adjusted, crucial for providers to monitor as it may influence overall reimbursement levels.

What Changed Effective October 1, 2024, the updated hospice wage index will directly affect payment rates for hospice services. Although specific CPT, HCPCS, or ICD-10 codes are not detailed, clinical coders should refer to the source document for updates on coding requirements. The adjustments in payment rates and the aggregate cap may indirectly influence coding practices, particularly in documentation and billing of hospice services.

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Quick answers

What is the new effective date for the hospice payment rate update?

The effective date is October 1, 2024.

How will the updated wage index affect hospice billing?

The updated wage index will directly impact payment rates for hospice services.

What documentation is required under the new rule?

Providers must maintain thorough records justifying services, including patient assessments and care plans.

Content summarized from publicly available federal publications including CMS, MAC contractors, and the Federal Register. CLV Intelligence is not affiliated with or endorsed by any government agency. This is not legal or medical advice.

Skilled Nursing Facility Alert: Hospice Payment Rate Update — Action Required by October 2024