On December 7th, the Medicare Payment Advisory Commission discussed recommendations for hospice payment in 2025. The commissioners finalized a recommendation for no payment update for hospice services, the payment recommendation will be finalized in January for publication in the March report to Congress. MedPAC Commissioners also reviewed information on non-hospice spending which will be published in the March report including three recommendations for curbing spending: a) creating a more inclusive definition of “related” to the terminal illness; b) increasing the hospice base rate to cover more spending outside the traditional hospice payment; and c) creating payment penalties for hospices with high non-hospice spending rates.
Commissioners generally raised concerns about the low-quality ratings in hospice including the number of agencies with one-, two- and three-star ratings with one commissioner recommending hospices with low star ratings should be ejected from the program. Overall commissioners were supportive of the core work of hospice and opportunities to expand what is considered needed care under hospice. It is important to note that MedPAC discussions and recommendations are just that. CMS and Congress are not obligated to act on the Commission’s recommendations.
