Originally published by Jerri Lynn Ward, J.D..
Medicaid Payment Rates
As you know, the CMS Medicaid hospice payment rates memo was released on September 1, 2015. The
requirements reflect the Medicare final rule which was published on August 6, 2015. The rule changes
implement several items:
? Payment methodology for routine home care (RHC) – beginning January 1, 2016 the RHC rates
will be implemented; a higher base payment for the first 60 days of care and a reduced rate for
the days thereafter.
? Service Intensity Add-on – this is payment for services provided by a registered nurse or social
worker for up to four hours during the last seven days of a recipient’s life. This payment is in
addition to the RHC. Payment is equal to the continuous home care hourly rate multiplied by the
hours of nursing or social work provided that occurred on the day of service. The service
intensity add-on will be reviewed and paid after by the fiscal intermediary.
? The hospice rates provide for an annual increase.
? The hospice cap amount for Federal Fiscal Year 2016 is $27,820.75.
? Quality reporting will continue. If the provider does not complete the quality data report the
payment rate will be decreased by two percentage points.
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