Provider Notice issued 09/10/12

No Hospice Rate Reductions Effective July 1, 2012

The department issued an institutional provider notice titled, “Institutional Provider Rate Reductions Effective July 1, 2012” on June 30, 2012, that identified rate reductions of 3.5% or 2.7% on specified services. Services provided by a hospice agency were included as receiving a 2.7% reduction effective with dates of service beginning July 1, 2012.

This notice serves to inform hospice providers that the department will not implement the 2.7% reduction for the four covered categories of hospice services: routine home care, continuous home care, general inpatient care, and respite care. As Medicaid hospice payment rates are calculated based on the annual hospice rates determined by the federal Centers for Medicare and Medicaid Services (CMS), the department cannot reduce these rates established by that entity.

The department will prepare adjustments for any claims with dates of service beginning July 1, 2012 that have already been priced with the 2.7% reduction.

Providers wishing to receive e-mail notification, when new provider information is posted by the department, may register at the following HFS Web site.

Any questions regarding this notice may be directed to your agency’s medical assistance consultant in the Bureau of Comprehensive Health Services at 1-877-782-5565.

Theresa A. Eagleson, Administrator

Division of Medical Programs