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2020 Medicare Hospice Reimbursement Update


As the end of the year quickly draws near, we once again review the changes affecting hospice care medical costs and reimbursements for the upcoming year. Hospice providers face a number of challenges every year as they attempt to cover all patient care and non-patient care expenses with little reimbursement that must cover administrative costs, durable medical equipment (DME), nursing time, pharmacy and medical supplies.

The most recent rate changes in the reimbursement landscape of 2020 hospice care are listed below. These are base rates and it’s important to note that each county has a distinctive rate based on the cost of living, for example, Los Angeles costs will be much higher than smaller cities like Cincinnati. Knowing these changes year to year helps hospice healthcare providers better prepare for the year ahead.

Rate Changes from FY2019 to FY2020

Below is a comparison of Medicare Reimbursement rates for FY2019 and FY2020 as provided by the Centers for Medicare and Medicaid Services (CMS). Reimbursement is dependent on compliance with reporting standards. You may have already experienced the changes from the FY2019 rates that ended on Sept. 30, 2019.

The current base payment rates for 2020 include:

  • Routine Home Care (days 1-60) $196.50 decreases to $194.75
  • Routine Home Care (days 61+) $154.41 decreases to $153.92
  • Continuous Home Care Full Rate = 24 hours of care
    • Hourly rate of $41.57 increases to $58.17
    • Payment rate of $997.77 increases to $1,396.17
  • Inpatient Respite Care of $185.27 increases to $473.79
  • General Inpatient Care of $758.07 increases to $1,021.25

Additionally, the FY2019 cap was $29,205.44, while the FY2020 cap ending on Sept. 30, 2020, is $29,964.78.

(These are the base rates that vary according to the economic multiplier used for different parts of the country as well as rural vs. urban communities quoted for providers who have submitted the required data. Click here for more detailed information on Medicare costs.)

Concordance Healthcare Solutions provides innovative tools and important every day supplies to hospice providers to help address unique and specific challenges. Learn more about our unique solutions that address the rising costs of providing hospice care.

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