The payment update provides hospices with slightly higher reimbursement, which may help offset rising staffing and operational costs, but the gains are modest and may not fully relieve financial pressure for smaller providers. Continued quality reporting requirements and clarified documentation rules improve transparency and program integrity, but they also impose ongoing administrative obligations that providers will need to manage carefully.
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Department of Health and Human Services
A legally binding directive issued by a federal agency to implement, interpret, or enforce laws passed by Congress. Rules go through a formal rulemaking process, including public notice and comment, before taking effect.
Who It Impacts: Businesses, organizations, and individuals subject to federal agency oversight. For example, a new environmental regulation could impact manufacturing companies, or a healthcare rule could affect providers and insurers.
Who Is Not Impacted: People or entities not subject to the agency’s jurisdiction. For example, a rule by the Environmental Protection Agency (EPA) regulating industrial emissions would not directly impact a restaurant owner unless they operate in an affected industry.
Date Enacted
August 1, 2025
Last Updated
December 18, 2025
Policy Type
Healthcare Delivery, Services & Quality
No items found.
Summary
This rule increases Medicare hospice payment rates and updates the wage index to better reflect local labor costs. The result is a modest overall payment increase for hospice providers. It also clarifies certain eligibility and documentation requirements, and maintains the reporting requirements for the Hospice Quality Reporting Program, with penalties for providers who fail to submit required data.
Impact Analysis
Legal Challenges
N/A
Take Institutional Action
- Prepare in advance for the updates and change in processes through proactively training staff and providing feedback to CMS on implementation challenges.
- Collaborate with other hospices to share best practices and strategies for implementing these changes.
Associated or Derivative Policies
N/A
Policy Prior to 2025
N/A
